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.
Sumitomo Pharma Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.80%.
As of Dec. 2023, Sumitomo Pharma Co has a Sloan Ratio of 2.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sumitomo Pharma Co Sloan Ratio % Historical Data
The historical data trend for Sumitomo Pharma Co'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 Sumitomo Pharma Co's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Sumitomo Pharma Co'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.
Sumitomo Pharma Co's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sumitomo Pharma Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sumitomo Pharma Co's Sloan Ratio % falls into.
Sumitomo Pharma Co 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.
Sumitomo Pharma Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Sumitomo Pharma Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -419.035 (Mar. 2023 ) + -274.898 (Jun. 2023 ) + -195.313 (Sep. 2023 ) + -347.038 (Dec. 2023 ) = $-1,236 Mil.
Sumitomo Pharma Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -333.627 (Mar. 2023 ) + -920.789 (Jun. 2023 ) + -299.882 (Sep. 2023 ) + -390.571 (Dec. 2023 ) = $-1,945 Mil.
Sumitomo Pharma Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 229.919 (Mar. 2023 ) + 272.061 (Jun. 2023 ) + -39.115 (Sep. 2023 ) + 39.359 (Dec. 2023 ) = $502 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.
Sumitomo Pharma Co (OTCPK:DNPUF) 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, Sumitomo Pharma Co has a Sloan Ratio of 2.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sumitomo Pharma Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Sumitomo Pharma Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sumitomo Pharma Co (Sumitomo Pharma Co) Business Description
Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DNPUF has been successfully added to your 