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.
Transact Energy's Sloan Ratio for the quarter that ended in Dec. 2022 was 0.00%.
As of Dec. 2022, Transact Energy has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Transact Energy Sloan Ratio % Historical Data
The historical data trend for Transact Energy'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 Transact Energy's Sloan Ratio %
For the Pollution & Treatment Controls subindustry, Transact Energy'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.
Transact Energy's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Transact Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Transact Energy's Sloan Ratio % falls into.
Transact Energy 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.
Transact Energy's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Transact Energy's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was -0.629 (Mar. 2022 ) + -0.477 (Jun. 2022 ) + -0.489 (Sep. 2022 ) + -0.56 (Dec. 2022 ) = $-2.16 Mil.
Transact Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was -0.029 (Mar. 2022 ) + -0.029 (Jun. 2022 ) + -0.036 (Sep. 2022 ) + -0.038 (Dec. 2022 ) = $-0.13 Mil.
Transact Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -0.286 (Mar. 2022 ) + 0 (Jun. 2022 ) + 0 (Sep. 2022 ) + 0 (Dec. 2022 ) = $-0.29 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.
Transact Energy (OTCPK:TEGY) 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. 2022, Transact Energy has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Transact Energy Sloan Ratio % Related Terms
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Transact Energy (Transact Energy) Business Description
Transact Energy Corp is a development stage company, it is engaged in the business of developing and managing zero-emission waste optimization plants globally. The company's zero-emissions waste optimization plant (Z.E.W.O.P.), makes ecological, economic, cultural, and social sense, and provides markets with an emission-free solution utilizing their waste and turning it into products, including fuels that can be used in these domestic markets. Its products include carbon black, phenol resins, ethanol, fertilizer, medium wax, cullet, brick mix, alkanes, aluminum, paraffin wax, and Levoglucosan. The Company has the potential to eliminate landfills and incineration of Municipal Solid Waste in every community.
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