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.
Solid Biosciences's Sloan Ratio for the quarter that ended in Mar. 2024 was 27.02%.
As of Mar. 2024, Solid Biosciences has a Sloan Ratio of 27.02%, indicating there is a warning stage of accrual build up.
Solid Biosciences Sloan Ratio % Historical Data
The historical data trend for Solid Biosciences'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 Solid Biosciences's Sloan Ratio %
For the Biotechnology subindustry, Solid Biosciences'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.
Solid Biosciences's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Solid Biosciences's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Solid Biosciences's Sloan Ratio % falls into.
Solid Biosciences 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.
Solid Biosciences's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Solid Biosciences's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -24.629 (Jun. 2023 ) + -20.98 (Sep. 2023 ) + -20.336 (Dec. 2023 ) + -24.303 (Mar. 2024 ) = $-90.25 Mil.
Solid Biosciences's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -27.465 (Jun. 2023 ) + -17.897 (Sep. 2023 ) + -20.823 (Dec. 2023 ) + -25.192 (Mar. 2024 ) = $-91.38 Mil.
Solid Biosciences's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -48.232 (Jun. 2023 ) + -24.635 (Sep. 2023 ) + 45.296 (Dec. 2023 ) + -38.49 (Mar. 2024 ) = $-66.06 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.
Solid Biosciences (NAS:SLDB) 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, Solid Biosciences has a Sloan Ratio of 27.02%, indicating there is a warning stage of accrual build up.
Solid Biosciences Sloan Ratio % Related Terms
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Solid Biosciences (Solid Biosciences) Business Description
Solid Biosciences Inc is a life science company. It is engaged in the manufacturing of specialty and generic drugs. The company is involved in curing Duchenne muscular dystrophy (DMD), a genetic muscle-wasting disease predominantly affecting boys, with symptoms that usually manifest between three and five years of age. The company's pipeline products are the SB-001 and solid suit. The company has categorized its programs into corrective therapies, disease-modifying therapies, and assistive devices.
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