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.
RGC Resources's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.74%.
As of Dec. 2023, RGC Resources has a Sloan Ratio of 3.74%, indicating the company is in the safe zone and there is no funny business with accruals.
RGC Resources Sloan Ratio % Historical Data
The historical data trend for RGC Resources'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 RGC Resources's Sloan Ratio %
For the Utilities - Regulated Gas subindustry, RGC Resources'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.
RGC Resources's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, RGC Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RGC Resources's Sloan Ratio % falls into.
RGC Resources 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.
RGC Resources's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
RGC Resources's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 6.342 (Mar. 2023 ) + 0.687 (Jun. 2023 ) + 1.014 (Sep. 2023 ) + 5.02 (Dec. 2023 ) = $13.06 Mil.
RGC Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 19.39 (Mar. 2023 ) + 6.669 (Jun. 2023 ) + 0.162 (Sep. 2023 ) + -0.564 (Dec. 2023 ) = $25.66 Mil.
RGC Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -6.002 (Mar. 2023 ) + -7.114 (Jun. 2023 ) + -5.938 (Sep. 2023 ) + -5.3 (Dec. 2023 ) = $-24.35 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.
RGC Resources (NAS:RGCO) 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, RGC Resources has a Sloan Ratio of 3.74%, indicating the company is in the safe zone and there is no funny business with accruals.
RGC Resources Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of RGC Resources's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
RGC Resources (RGC Resources) Business Description
RGC Resources Inc is involved in the business of distribution and sale of natural gas to residential, commercial, and industrial customers within its service territory in Roanoke, Virginia and its surrounding localities as well as it also provides certain non-regulated services. The company relies on multiple interstate pipelines to transport natural gas. The company operates in three segments: Gas Utility, which is the key revenue generator; Investment in Affiliates this segment reflects the income generated through the activities of the Company's investment in MVP and Southgate projects and Parent & Other include the unregulated activities of the Company as well as certain corporate eliminations.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RGCO has been successfully added to your 