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.
Range Resources's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.58%.
As of Mar. 2024, Range Resources has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Range Resources Sloan Ratio % Historical Data
The historical data trend for Range 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 Range Resources's Sloan Ratio %
For the Oil & Gas E&P subindustry, Range 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.
Range Resources's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Range Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Range Resources's Sloan Ratio % falls into.
Range 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.
Range Resources's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Range Resources's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 30.231 (Jun. 2023 ) + 49.43 (Sep. 2023 ) + 310.034 (Dec. 2023 ) + 92.138 (Mar. 2024 ) = $482 Mil.
Range Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 126.59 (Jun. 2023 ) + 150.251 (Sep. 2023 ) + 226.095 (Dec. 2023 ) + 331.93 (Mar. 2024 ) = $835 Mil.
Range Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -153.366 (Jun. 2023 ) + -152.23 (Sep. 2023 ) + -157.816 (Dec. 2023 ) + -153.889 (Mar. 2024 ) = $-617 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.
Range Resources (NYSE:RRC) 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. 2024, Range Resources has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Range Resources Sloan Ratio % Related Terms
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Range Resources (Range Resources) Business Description
Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2022, Range's proved reserves totaled 18.1 trillion cubic feet equivalent, with net production of 2.1 billion cubic feet equivalent per day. Natural gas accounted for 70% of production.
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