What is Rentech Nitrogen Partners LP Sloan Ratio %?
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.
* 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 Rentech Nitrogen Partners LP's Sloan Ratio %
For the Agricultural Inputs subindustry, Rentech Nitrogen Partners LP'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.
Rentech Nitrogen Partners LP's Sloan Ratio % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Rentech Nitrogen Partners LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rentech Nitrogen Partners LP's Sloan Ratio % falls into.
Rentech Nitrogen Partners LP 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.
Rentech Nitrogen Partners LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 8.953 (Mar. 2015 ) + -66.211 (Jun. 2015 ) + -25.72 (Sep. 2015 ) + -18.406 (Dec. 2015 ) = $-101.4 Mil.
Rentech Nitrogen Partners LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 22.475 (Mar. 2015 ) + 19.492 (Jun. 2015 ) + 44.805 (Sep. 2015 ) + -7.294 (Dec. 2015 ) = $79.5 Mil.
Rentech Nitrogen Partners LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -10.359 (Mar. 2015 ) + -4.313 (Jun. 2015 ) + -8.521 (Sep. 2015 ) + -13.25 (Dec. 2015 ) = $-36.4 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.
Rentech Nitrogen Partners LP (NYSE:RNF) 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 Dec. 2015, Rentech Nitrogen Partners LP has a Sloan Ratio of -59.83%, indicating earnings are more likely to be made up of accruals.
Rentech Nitrogen Partners LP Sloan Ratio % Related Terms
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Rentech Nitrogen Partners LP (Rentech Nitrogen Partners LP) Business Description
Rentech Nitrogen Partners LP is a Delaware limited partnership formed in July 2011. The Company is engaged in manufacturing of nitrogen fertilizer. The Company owns and operates two fertilizer facilities: East Dubuque Facility and Pasadena Facility. The East Dubuque Facility produces ammonia, UAN, liquid and granular urea, nitric acid and food-grade carbon dioxide, or CO2, using natural gas as its primary feedstock. Some of these products are final products sold to customers, and others, including ammonia, are both final products and feedstocks for other products, such as UAN, nitric acid, liquid urea and granular urea. The Pasadena Facility ceased production of diammonium phosphate and monoammonium phosphate. Its Pasadena Facility is the producer of synthetic ammonium sulfate and the third largest producer of ammonium sulfate in North America. The Pasadena Facility's products are applied to many types of crops including soybeans, potatoes, cotton, canola, alfalfa, corn and wheat. The Company is subject to a number of federal and state laws and regulations related to safety, including the federal Occupational Safety and Health Act, or OSHA, and comparable state statutes, the purpose of which are to protect the health and safety of workers.
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