Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
TECO Energy's Sloan Ratio for the quarter that ended in Mar. 2016 was 2.75%.
As of Mar. 2016, TECO Energy has a Sloan Ratio of 2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
TECO Energy Sloan Ratio % Historical Data
The historical data trend for TECO Energy's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of TECO Energy's Sloan Ratio %
For the Utilities - Regulated Electric subindustry, TECO Energy's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TECO Energy's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, TECO Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TECO Energy's Sloan Ratio % falls into.
TECO Energy Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
TECO Energy's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
TECO Energy's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 11.8 (Jun. 2015 ) + 53.2 (Sep. 2015 ) + 50.5 (Dec. 2015 ) + 73.8 (Mar. 2016 ) = $189 Mil.
TECO Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 149.8 (Jun. 2015 ) + 182.6 (Sep. 2015 ) + 130.2 (Dec. 2015 ) + 231.6 (Mar. 2016 ) = $694 Mil.
TECO Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -179.4 (Jun. 2015 ) + -175.4 (Sep. 2015 ) + -228.8 (Dec. 2015 ) + -168.2 (Mar. 2016 ) = $-752 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TECO Energy (NYSE:TE) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2016, TECO Energy has a Sloan Ratio of 2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
TECO Energy Sloan Ratio % Related Terms
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TECO Energy Inc was incorporated in Florida in 1981 as part of a restructuring in which it became the parent corporation of Tampa Electric Company. The Company is an energy-related holding company with five core businesses, consisting of regulated electric and gas utility operations in Florida and other operating companies engaged in coal mining and synthetic fuel production, waterborne transportation services and unregulated electric generation with long-term contracts and regulated electricity distribution in Guatemala. In 2000 and 2001, the Company announced a series of investments in unregulated domestic power generation facilities outside of Florida, which were made in the 2000 through 2003 period. In the same period, the Company also invested in other smaller unregulated energy service providers within Florida. These investments were made in anticipation of a movement toward competitive energy markets in Florida and other states in which the Company was investing in new power plants. In 2003, the Company announced its revised business strategy, which was to focus on its Florida utilities and other profitable operating companies and to reduce the risk to cash flow and earnings from its involvement in the merchant power sector. Since that announcement, the Company has taken a number of steps that have eliminated its merchant power risk and improved its financial results. The Company's regulated utility companies, Tampa Electric and Peoples Gas operate in the high-growth Florida market. Tampa Electric serves almost 720,000 retail customers in a 2,000-square-mile service area in West Central Florida and has electric generating plants with a winter peak generating capacity of 4,730 MW. PGS, Florida's largest gas distribution utility, serves more than 360,000 residential, commercial, industrial and electric power generating customers in all major metropolitan areas of the state, with a total natural gas throughput of almost 1.8 billion therms in 2015.. Peoples Gas System, a division of Tampa Electric Company, is engaged in the purchase and distribution of natural gas for residential, commercial, industrial and electric power generation customers in Florida. The Company's other energy-related operating companies are: TECO Coal, TECO Transport and TECO Guatemala. TECO Coal, through its subsidiaries, operates 13 surface and 27 underground mines and related coal processing facilities in eastern Kentucky, Tennessee and southwestern Virginia producing metallurgical-grade and high-quality steam coals. TECO Transport, the Company's waterborne transportation company, through its subsidiaries, operates a fleet of inland river barges and towboats on the Ohio, Mississippi and Illinois rivers and their tributaries; a fleet of eight oceangoing tug-barge combination units and three ships that operate in the Gulf of Mexico and world wide; and a dry-bulk storage and transfer terminal located on the Mississippi River southeast of New Orleans. TECO
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