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.
Palatin Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was -105.81%.
As of Dec. 2023, Palatin Technologies has a Sloan Ratio of -105.81%, indicating there is a warning stage of accrual build up.
Palatin Technologies Sloan Ratio % Historical Data
The historical data trend for Palatin Technologies'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 Palatin Technologies's Sloan Ratio %
For the Biotechnology subindustry, Palatin Technologies'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.
Palatin Technologies's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Palatin Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Palatin Technologies's Sloan Ratio % falls into.
Palatin Technologies 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.
Palatin Technologies's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Palatin Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -7.148 (Mar. 2023 ) + -10.714 (Jun. 2023 ) + -5.888 (Sep. 2023 ) + -7.844 (Dec. 2023 ) = $-31.59 Mil.
Palatin Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.556 (Mar. 2023 ) + -9.606 (Jun. 2023 ) + -5.906 (Sep. 2023 ) + -10.476 (Dec. 2023 ) = $-26.54 Mil.
Palatin Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.117 (Mar. 2023 ) + -3.045 (Jun. 2023 ) + 2.993 (Sep. 2023 ) + 9.462 (Dec. 2023 ) = $9.29 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.
Palatin Technologies (AMEX:PTN) 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, Palatin Technologies has a Sloan Ratio of -105.81%, indicating there is a warning stage of accrual build up.
Palatin Technologies Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Palatin Technologies's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Palatin Technologies (Palatin Technologies) Business Description
Palatin Technologies Inc is a part of the healthcare sector. The company is engaged in developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with unmet medical needs and commercial potential. Its programs are based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. Its main product in clinical development is bremelanotide, which treats hypoactive sexual desire disorder, which is a type of female sexual dysfunction.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PTN has been successfully added to your 