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.
As of Mar. 2024, Forum Energy Technologies has a Sloan Ratio of 9.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Forum Energy Technologies Sloan Ratio % Historical Data
* 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 Forum Energy Technologies's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Forum Energy Technologies'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.
Forum Energy Technologies's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Forum Energy Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Forum Energy Technologies's Sloan Ratio % falls into.
Forum Energy Technologies 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.
Forum Energy Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Forum Energy Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -6.579 (Jun. 2023 ) + 7.969 (Sep. 2023 ) + -16.78 (Dec. 2023 ) + -10.315 (Mar. 2024 ) = $-25.7 Mil.
Forum Energy Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -6.363 (Jun. 2023 ) + 26.414 (Sep. 2023 ) + 11.26 (Dec. 2023 ) + 5.023 (Mar. 2024 ) = $36.3 Mil.
Forum Energy Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.884 (Jun. 2023 ) + -2.453 (Sep. 2023 ) + -2.417 (Dec. 2023 ) + -152.819 (Mar. 2024 ) = $-158.6 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.
Forum Energy Technologies (NYSE:FET) 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, Forum Energy Technologies has a Sloan Ratio of 9.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Forum Energy Technologies Sloan Ratio % Related Terms
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Forum Energy Technologies (Forum Energy Technologies) Business Description
Forum Energy Technologies Inc is a global products company, serving the oil, natural gas, industrial and renewable energy industries. The company designs, manufactures, and distributes products and engages in aftermarket parts supply and services that complement its product offering. Its products include highly engineered capital equipment, as well as products that are consumed in the drilling, well construction, production, and transportation of oil and natural gas. It operates in three reporting segments, namely drilling and downhole, completions, and production. Revenue largely comes from consumable products and activity-based equipment. Consumable products include valves, centrifugal pumps, mud pump fluid end components, rig sensors, inserts, and dies.
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