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.
Sinovac Biotech's Sloan Ratio for the quarter that ended in Jun. 2023 was 33.19%.
Warning Sign:
When sloan ratio (47.08)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2023, Sinovac Biotech has a Sloan Ratio of 33.19%, indicating earnings are more likely to be made up of accruals.
Sinovac Biotech Sloan Ratio % Historical Data
The historical data trend for Sinovac Biotech'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 Sinovac Biotech's Sloan Ratio %
For the Biotechnology subindustry, Sinovac Biotech'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.
Sinovac Biotech's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sinovac Biotech's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sinovac Biotech's Sloan Ratio % falls into.
Sinovac Biotech 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.
Sinovac Biotech's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sinovac Biotech's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -370.646 (Dec. 2022 ) + 16.918 (Jun. 2023 ) = $-353.7 Mil.
Sinovac Biotech's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 37.421 (Dec. 2022 ) + -39.991 (Jun. 2023 ) = $-2.6 Mil.
Sinovac Biotech's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -2175.828 (Dec. 2022 ) + -2730.947 (Jun. 2023 ) = $-4,906.8 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.
Sinovac Biotech (NAS:SVA) 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. 2023, Sinovac Biotech has a Sloan Ratio of 33.19%, indicating earnings are more likely to be made up of accruals.
Sinovac Biotech Sloan Ratio % Related Terms
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Sinovac Biotech (Sinovac Biotech) Business Description
Sinovac Biotech Ltd is a biopharmaceutical company. The company focuses on the research, development, manufacturing, and commercialization of vaccines for infectious diseases. Its product portfolio includes vaccines against hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), mumps, and canine rabies. The company also provides services for disease control and prevention, collaborating with the Chinese governments at the national, state, and local levels. It sells its vaccines in China, while also exploring growth opportunities in international markets.
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