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.
Viracta Therapeutics's Sloan Ratio for the quarter that ended in Mar. 2024 was -116.44%.
Warning Sign:
When sloan ratio (-46.15)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Viracta Therapeutics has a Sloan Ratio of -116.44%, indicating earnings are more likely to be made up of accruals.
Viracta Therapeutics Sloan Ratio % Historical Data
The historical data trend for Viracta Therapeutics'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 Viracta Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Viracta 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.
Viracta Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Viracta Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Viracta Therapeutics's Sloan Ratio % falls into.
Viracta 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.
Viracta Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Viracta Therapeutics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -12.484 (Jun. 2023 ) + -12.6 (Sep. 2023 ) + -13.765 (Dec. 2023 ) + -9.141 (Mar. 2024 ) = $-47.99 Mil.
Viracta Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -7.99 (Jun. 2023 ) + -10.535 (Sep. 2023 ) + -10.027 (Dec. 2023 ) + -7.849 (Mar. 2024 ) = $-36.40 Mil.
Viracta Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 3.98 (Jun. 2023 ) + 9.098 (Sep. 2023 ) + 9.27 (Dec. 2023 ) + 14.192 (Mar. 2024 ) = $36.54 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.
Viracta Therapeutics (NAS:VIRX) 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, Viracta Therapeutics has a Sloan Ratio of -116.44%, indicating earnings are more likely to be made up of accruals.
Viracta Therapeutics Sloan Ratio % Related Terms
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Viracta Therapeutics (Viracta Therapeutics) Business Description
Viracta Therapeutics Inc is a precision oncology company, focused on the development of new medicines targeting virus-associated malignancies. The company is conducting three clinical trials for its combination product candidate as a potential therapy for the treatment of relapsed/refractory Epstein-Barr virus-positive lymphoma. Its lead product candidate is a combination product candidate consisting of nanatinostat, a potent and selective small molecule inhibitor of class I histone deacetylases (HDAC), and valganciclovir, an FDA-approved anti-viral drug used to treat and prevent disease caused by a virus called cytomegalovirus (CMV) in people who have received organ transplants.
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