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.
* 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 4D Molecular Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, 4D Molecular Therapeutics'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.
4D Molecular Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, 4D Molecular Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where 4D Molecular Therapeutics's Sloan Ratio % falls into.
4D Molecular Therapeutics 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.
4D Molecular Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
4D Molecular Therapeutics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -29.616 (Jun. 2023 ) + -10.256 (Sep. 2023 ) + -32.283 (Dec. 2023 ) + -32.401 (Mar. 2024 ) = $-104.56 Mil.
4D Molecular Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -22.065 (Jun. 2023 ) + -1.171 (Sep. 2023 ) + -24.65 (Dec. 2023 ) + -29.088 (Mar. 2024 ) = $-76.97 Mil.
4D Molecular Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 49.288 (Jun. 2023 ) + 29.981 (Sep. 2023 ) + -6.682 (Dec. 2023 ) + -263.258 (Mar. 2024 ) = $-190.67 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.
4D Molecular Therapeutics (NAS:FDMT) 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 Mar. 2024, 4D Molecular Therapeutics has a Sloan Ratio of 25.89%, indicating earnings are more likely to be made up of accruals.
4D Molecular Therapeutics Sloan Ratio % Related Terms
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4D Molecular Therapeutics (4D Molecular Therapeutics) Business Description
4D Molecular Therapeutics Inc a clinical-stage gene therapy company engaged in the development of product candidates using targeted and evolved AAV vectors. It has built portfolio of gene therapy product candidates focused in three therapeutic areas: ophthalmology (intravitreal vector), cardiology (intravenous vector) and pulmonology (aerosol vector). It has three product candidates in clinical trials: 4D-125 for the treatment of X-linked retinitis pigmentosa in a Phase 1/2 clinical trial, 4D-110 for the treatment of choroideremia in a Phase 1 clinical trial, and 4D-310 for the treatment of Fabry disease in a Phase 1/2 clinical trial. Its two IND candidates are 4D-150 for the treatment of wet age-related macular degeneration, and 4D-710 for the treatment of cystic fibrosis lung disease.
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