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.
Imperial Oil's Sloan Ratio for the quarter that ended in Dec. 2023 was 6.81%.
As of Dec. 2023, Imperial Oil has a Sloan Ratio of 6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Imperial Oil Sloan Ratio % Historical Data
The historical data trend for Imperial Oil'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 Imperial Oil's Sloan Ratio %
For the Oil & Gas Integrated subindustry, Imperial Oil'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.
Imperial Oil's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Imperial Oil's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Imperial Oil's Sloan Ratio % falls into.
Imperial Oil 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.
Imperial Oil's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Imperial Oil's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 912.081 (Mar. 2023 ) + 508.054 (Jun. 2023 ) + 1183.209 (Sep. 2023 ) + 1017.442 (Dec. 2023 ) = $3,621 Mil.
Imperial Oil's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -600.015 (Mar. 2023 ) + 666.115 (Jun. 2023 ) + 1743.404 (Sep. 2023 ) + 977.191 (Dec. 2023 ) = $2,787 Mil.
Imperial Oil's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -302.565 (Mar. 2023 ) + -368.057 (Jun. 2023 ) + -280.837 (Sep. 2023 ) + -306.351 (Dec. 2023 ) = $-1,258 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.
Imperial Oil (AMEX:IMO) 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, Imperial Oil has a Sloan Ratio of 6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Imperial Oil Sloan Ratio % Related Terms
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Imperial Oil is one of Canada's largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2020. The company estimates that it holds 5.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d. The Upstream segment operates to produce crude oil and its equivalent, and natural gas. The Downstream segment operates to refine crude oil into petroleum products. The Chemical segment manufactures hydrocarbon-based chemicals and chemical products.
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