What is Cerevel Therapeutics Holdings Sloan Ratio %?
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 Cerevel Therapeutics Holdings's Sloan Ratio %
For the Biotechnology subindustry, Cerevel Therapeutics Holdings'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.
Cerevel Therapeutics Holdings's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Cerevel Therapeutics Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cerevel Therapeutics Holdings's Sloan Ratio % falls into.
Cerevel Therapeutics Holdings 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.
Cerevel Therapeutics Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -104.286 (Mar. 2023 ) + -99.535 (Jun. 2023 ) + -96.361 (Sep. 2023 ) + -132.66 (Dec. 2023 ) = $-432.84 Mil.
Cerevel Therapeutics Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -94.923 (Mar. 2023 ) + -77.327 (Jun. 2023 ) + -72.631 (Sep. 2023 ) + -97.42 (Dec. 2023 ) = $-342.30 Mil.
Cerevel Therapeutics Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 110.783 (Mar. 2023 ) + 61.753 (Jun. 2023 ) + 51.394 (Sep. 2023 ) + -150.208 (Dec. 2023 ) = $73.72 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.
Cerevel Therapeutics Holdings (NAS:CERE) 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 Dec. 2023, Cerevel Therapeutics Holdings has a Sloan Ratio of -13.21%, indicating there is a warning stage of accrual build up.
Cerevel Therapeutics Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Cerevel Therapeutics Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cerevel Therapeutics Holdings (Cerevel Therapeutics Holdings) Business Description
Cerevel Therapeutics Holdings Inc is dedicated to unraveling the mysteries of the brain to treat neuroscience diseases. The company is tackling neuroscience diseases with a differentiated approach that combines expertise in neurocircuitry with a focus on receptor selectivity. It has a diversified pipeline comprising five clinical-stage investigational therapies and several preclinical compounds with the potential to treat a range of neuroscience diseases, including schizophrenia, epilepsy, Parkinson's disease and substance use disorder. Cerevel Therapeutics is advancing its current research and development programs while exploring new modalities through internal research efforts, external collaborations or potential acquisitions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CERE has been successfully added to your 