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, NCS Multistage Holdings has a Sloan Ratio of 7.65%, indicating the company is in the safe zone and there is no funny business with accruals.
NCS Multistage Holdings 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 NCS Multistage Holdings's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, NCS Multistage Holdings'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.
NCS Multistage Holdings's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NCS Multistage Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NCS Multistage Holdings's Sloan Ratio % falls into.
NCS Multistage Holdings 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.
NCS Multistage Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
NCS Multistage Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -32.231 (Jun. 2023 ) + 4.408 (Sep. 2023 ) + 39.639 (Dec. 2023 ) + 2.07 (Mar. 2024 ) = $13.9 Mil.
NCS Multistage Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0.509 (Jun. 2023 ) + -0.404 (Sep. 2023 ) + 6.22 (Dec. 2023 ) + -1.88 (Mar. 2024 ) = $4.4 Mil.
NCS Multistage Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.498 (Jun. 2023 ) + -0.535 (Sep. 2023 ) + -0.17 (Dec. 2023 ) + -0.136 (Mar. 2024 ) = $-1.3 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.
NCS Multistage Holdings (NAS:NCSM) 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, NCS Multistage Holdings has a Sloan Ratio of 7.65%, indicating the company is in the safe zone and there is no funny business with accruals.
NCS Multistage Holdings Sloan Ratio % Related Terms
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NCS Multistage Holdings (NCS Multistage Holdings) Business Description
NCS Multistage Holdings Inc provides products and support services that facilitate the optimization of oil and natural gas well completions and field development strategies. NCS provides its products and services primarily to exploration and production companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The company's primary offering is its fracturing systems products and services, which enable efficient pinpoint stimulation: the process of individually stimulating each entry point into a formation targeted by an oil or natural gas well. Geographically, majority of revenue is generated from United States.
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