Stock Analysis on Net

Anadarko Petroleum Corp. (NYSE:APC)

This company has been moved to the archive! The financial data has not been updated since October 31, 2017.

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Anadarko Petroleum Corp., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Operating Assets
Total assets 45,564 46,414 61,689 55,781 52,589
Less: Cash and cash equivalents 3,184 939 7,369 3,698 2,471
Operating assets 42,380 45,475 54,320 52,083 50,118
Operating Liabilities
Total liabilities 30,067 30,957 39,371 32,131 30,707
Less: Short-term debt 42 33 500
Less: Long-term debt, excluding current portion 15,281 15,718 15,092 13,065 13,269
Operating liabilities 14,744 15,206 24,279 18,566 17,438
 
Net operating assets1 27,636 30,269 30,041 33,517 32,680
Balance-sheet-based aggregate accruals2 (2,633) 228 (3,476) 837
Financial Ratio
Balance-sheet-based accruals ratio3 -9.09% 0.76% -10.94% 2.53%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.
Marathon Petroleum Corp.
Occidental Petroleum Corp.
Valero Energy Corp.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 2016 Calculation
Net operating assets = Operating assets – Operating liabilities
= 42,38014,744 = 27,636

2 2016 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2016 – Net operating assets2015
= 27,63630,269 = -2,633

3 2016 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -2,633 ÷ [(27,636 + 30,269) ÷ 2] = -9.09%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Anadarko Petroleum Corp. deteriorated earnings quality from 2015 to 2016.

Cash-Flow-Statement-Based Accruals Ratio

Anadarko Petroleum Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Less: Net cash provided by (used in) operating activities 3,000 (1,877) 8,466 8,888 8,339
Less: Net cash used in investing activities (2,762) (4,771) (6,472) (8,216) (6,869)
Cash-flow-statement-based aggregate accruals (3,309) (44) (3,744) 129 921
Financial Ratio
Cash-flow-statement-based accruals ratio1 -11.43% -0.15% -11.78% 0.39%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.
Marathon Petroleum Corp.
Occidental Petroleum Corp.
Valero Energy Corp.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 2016 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -3,309 ÷ [(27,636 + 30,269) ÷ 2] = -11.43%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Anadarko Petroleum Corp. deteriorated earnings quality from 2015 to 2016.