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 Global Blood Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Global Blood 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.
Global Blood Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Global Blood Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Global Blood Therapeutics's Sloan Ratio % falls into.
Global Blood 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.
Global Blood Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Global Blood Therapeutics's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was -70.988 (Sep. 2021 ) + -87.581 (Dec. 2021 ) + -81.423 (Mar. 2022 ) + -82.47 (Jun. 2022 ) = $-322.5 Mil.
Global Blood Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2022 was -65.31 (Sep. 2021 ) + -67.926 (Dec. 2021 ) + -71.853 (Mar. 2022 ) + -44.308 (Jun. 2022 ) = $-249.4 Mil.
Global Blood Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2022 was -16.129 (Sep. 2021 ) + -17.511 (Dec. 2021 ) + -222.5 (Mar. 2022 ) + -134.661 (Jun. 2022 ) = $-390.8 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.
Global Blood Therapeutics (NAS:GBT) 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 Jun. 2022, Global Blood Therapeutics has a Sloan Ratio of 36.50%, indicating there is a warning stage of accrual build up.
Global Blood Therapeutics Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Global Blood Therapeutics's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Global Blood Therapeutics (Global Blood Therapeutics) Business Description
Global Blood Therapeutics Inc operates in the healthcare sector of the United States. It discovers and develops novel therapeutics to address blood-based disorders. GBT440, its lead drug candidate targets the underlying mechanism of red blood cell (RBC) sickling, which provides the potential to treat sickle cell disease. GBT440. an oral, once-daily therapy arrests abnormal hemoglobin polymerization, the underlying mechanism of RBC sickling. In addition, the company is engaged in other research and development activities targeted at hereditary angioedema and owns exclusively licensed rights to its portfolio of product candidates in the United States, Europe, and other major markets.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GBT has been successfully added to your 