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.
Galp Energia SGPS's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.22%.
As of Dec. 2023, Galp Energia SGPS has a Sloan Ratio of -2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Galp Energia SGPS Sloan Ratio % Historical Data
The historical data trend for Galp Energia SGPS'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 Galp Energia SGPS's Sloan Ratio %
For the Oil & Gas Integrated subindustry, Galp Energia SGPS'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.
Galp Energia SGPS's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Galp Energia SGPS's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Galp Energia SGPS's Sloan Ratio % falls into.
Galp Energia SGPS 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.
Galp Energia SGPS's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Galp Energia SGPS's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 352 (Mar. 2023 ) + 251 (Jun. 2023 ) + 303 (Sep. 2023 ) + 336 (Dec. 2023 ) = €1,242 Mil.
Galp Energia SGPS's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 500 (Mar. 2023 ) + 733 (Jun. 2023 ) + 723 (Sep. 2023 ) + 672 (Dec. 2023 ) = €2,628 Mil.
Galp Energia SGPS's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -109 (Mar. 2023 ) + -207 (Jun. 2023 ) + -292 (Sep. 2023 ) + -409 (Dec. 2023 ) = €-1,017 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.
Galp Energia SGPS (XLIS:GALP) 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, Galp Energia SGPS has a Sloan Ratio of -2.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Galp Energia SGPS Sloan Ratio % Related Terms
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Galp Energia SGPS (XLIS:GALP) Business Description
Galp Energia SGPS SA is an integrated operator with business lines spanning from exploration and production to refining and marketing of oil products. Its operating segments include Upstream, Industrial and Midstream, Commercial and Renewables and New Businesses. The Upstream segment involves the management of all activities relating to the exploration, development, and production of hydrocarbons. The Industrial & Midstream segment operates the Sines industrial site in Portugal, which includes all current refining activities, The Commercial segment encompasses the area of retail to final B2B and B2C customers of oil, gas, electricity, and convenience. The Renewables & New businesses segment represents Galp's presence in the renewable and new energies space.
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