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.
Flotek Industries's Sloan Ratio for the quarter that ended in Dec. 2023 was 23.51%.
As of Dec. 2023, Flotek Industries has a Sloan Ratio of 23.51%, indicating there is a warning stage of accrual build up.
Flotek Industries Sloan Ratio % Historical Data
The historical data trend for Flotek Industries'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 Flotek Industries's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Flotek Industries'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.
Flotek Industries's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Flotek Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Flotek Industries's Sloan Ratio % falls into.
Flotek Industries 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.
Flotek Industries's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Flotek Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 21.343 (Mar. 2023 ) + -0.021 (Jun. 2023 ) + 1.287 (Sep. 2023 ) + 2.104 (Dec. 2023 ) = $24.7 Mil.
Flotek Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1.14 (Mar. 2023 ) + -3.374 (Jun. 2023 ) + -7.014 (Sep. 2023 ) + -2.049 (Dec. 2023 ) = $-11.3 Mil.
Flotek Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.157 (Mar. 2023 ) + -0.135 (Jun. 2023 ) + -0.233 (Sep. 2023 ) + -0.489 (Dec. 2023 ) = $-1.0 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.
Flotek Industries (NYSE:FTK) 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. 2023, Flotek Industries has a Sloan Ratio of 23.51%, indicating there is a warning stage of accrual build up.
Flotek Industries Sloan Ratio % Related Terms
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Flotek Industries (Flotek Industries) Business Description
Flotek Industries Inc delivers chemistry-based technology solutions for energy, industrial, and consumer applications. It develops and supplies chemistry and services to the oil and gas industries, and high-value compounds to companies that make food and beverages, cleaning products, cosmetics, and others. The company operates in the Chemistry Technologies segment which designs, develops, manufactures, packages, and markets chemistries that market specialty chemicals. Its Data Analytics segment enables users to maximize the value of their hydrocarbon-associated processes by providing analytics associated with the streams in seconds rather than minutes or days.
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