Stock Analysis on Net

Apache Corp. (NYSE:APA)

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Financial Reporting Quality: Aggregate Accruals

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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

Apache Corp., balance sheet computation of aggregate accruals

US$ in millions

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Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Operating Assets
Total assets 18,842 55,952 61,637 60,737 52,051
Less: Cash and cash equivalents 1,467 769 1,906 160 295
Operating assets 17,375 55,183 59,731 60,577 51,756
Operating Liabilities
Total liabilities 14,614 27,815 26,244 29,406 23,058
Less: Current debt 1 53 990 431
Less: Long-term debt, excluding current maturities 8,777 11,245 9,672 11,355 6,785
Operating liabilities 5,836 16,570 16,519 17,061 15,842
 
Net operating assets1 11,539 38,613 43,212 43,516 35,914
Balance-sheet-based aggregate accruals2 (27,074) (4,599) (304) 7,602
Financial Ratio
Balance-sheet-based accruals ratio3 -107.97% -11.24% -0.70% 19.14%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.
Marathon Petroleum Corp.
Occidental Petroleum Corp.
Pioneer Natural Resources Co.
Valero Energy Corp.

Based on: 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), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Net operating assets = Operating assets – Operating liabilities
= 17,3755,836 = 11,539

2 2015 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2015 – Net operating assets2014
= 11,53938,613 = -27,074

3 2015 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -27,074 ÷ [(11,539 + 38,613) ÷ 2] = -107.97%

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, Apache Corp. deteriorated earnings quality from 2014 to 2015.

Cash-Flow-Statement-Based Accruals Ratio

Apache Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Net income (loss) attributable to Apache shareholders (23,119) (5,403) 2,232 2,001 4,584
Less: Net cash provided by operating activities 2,834 8,379 9,835 8,504 9,953
Less: Net cash used in investing activities (3,659) (9,552) (7,116) (13,424) (8,645)
Cash-flow-statement-based aggregate accruals (22,294) (4,230) (487) 6,921 3,276
Financial Ratio
Cash-flow-statement-based accruals ratio1 -88.91% -10.34% -1.12% 17.43%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.
Marathon Petroleum Corp.
Occidental Petroleum Corp.
Pioneer Natural Resources Co.
Valero Energy Corp.

Based on: 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), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -22,294 ÷ [(11,539 + 38,613) ÷ 2] = -88.91%

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, Apache Corp. deteriorated earnings quality from 2014 to 2015.