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.
Myriad Genetics's Sloan Ratio for the quarter that ended in Dec. 2023 was -16.08%.
As of Dec. 2023, Myriad Genetics has a Sloan Ratio of -16.08%, indicating there is a warning stage of accrual build up.
Myriad Genetics Sloan Ratio % Historical Data
The historical data trend for Myriad Genetics'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 Myriad Genetics's Sloan Ratio %
For the Diagnostics & Research subindustry, Myriad Genetics'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.
Myriad Genetics's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Myriad Genetics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Myriad Genetics's Sloan Ratio % falls into.
Myriad Genetics 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.
Myriad Genetics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Myriad Genetics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -54.7 (Mar. 2023 ) + -116.1 (Jun. 2023 ) + -61.3 (Sep. 2023 ) + -31.2 (Dec. 2023 ) = $-263.3 Mil.
Myriad Genetics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -33.2 (Mar. 2023 ) + -0.9 (Jun. 2023 ) + -22.1 (Sep. 2023 ) + -54.7 (Dec. 2023 ) = $-110.9 Mil.
Myriad Genetics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 34.6 (Mar. 2023 ) + 11.8 (Jun. 2023 ) + -2.5 (Sep. 2023 ) + -12 (Dec. 2023 ) = $31.9 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.
Myriad Genetics (NAS:MYGN) 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, Myriad Genetics has a Sloan Ratio of -16.08%, indicating there is a warning stage of accrual build up.
Myriad Genetics Sloan Ratio % Related Terms
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Myriad Genetics (Myriad Genetics) Business Description
Myriad Genetics is a molecular diagnostics company that provides testing services designed to assess an individual's risk of developing a disease. The firm produces MyRisk, a 48-gene panel with the capability to identify the elevated risk of developing 11 types of cancer. Other diagnostic products include BRACAnalysis CDx, the FDA-approved companion diagnostic for PARP inhibitors; GeneSight, which helps improve responses to psychotropic drugs for patients suffering from depression; and Prequel, a noninvasive prenatal test. Precise Oncology Solutions, launched in 2022, combines Precise Tumor with companion diagnostic and prognostic tests such as MyChoice CDx, Prolaris, and EndoPredict. The firm offers biomarker discovery and companion diagnostic services to pharma and biotech companies.
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