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.
As of Dec. 2023, Santen Pharmaceutical Co has a Sloan Ratio of -7.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Santen Pharmaceutical Co Sloan Ratio % Historical Data
* 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 Santen Pharmaceutical Co's Sloan Ratio %
For the Drug Manufacturers - General subindustry, Santen Pharmaceutical 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.
Santen Pharmaceutical Co's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Santen Pharmaceutical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Santen Pharmaceutical Co's Sloan Ratio % falls into.
Santen Pharmaceutical 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.
Santen Pharmaceutical Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Santen Pharmaceutical Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 8.349 (Mar. 2023 ) + 73.671 (Jun. 2023 ) + 59.968 (Sep. 2023 ) + 50.923 (Dec. 2023 ) = $193 Mil.
Santen Pharmaceutical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 64.842 (Mar. 2023 ) + 17.997 (Jun. 2023 ) + 170.368 (Sep. 2023 ) + 220.223 (Dec. 2023 ) = $473 Mil.
Santen Pharmaceutical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -23.769 (Mar. 2023 ) + -19.1 (Jun. 2023 ) + -7.332 (Sep. 2023 ) + -13.509 (Dec. 2023 ) = $-64 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.
Santen Pharmaceutical Co (OTCPK:SNPHY) 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, Santen Pharmaceutical Co has a Sloan Ratio of -7.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Santen Pharmaceutical Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Santen Pharmaceutical Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Santen Pharmaceutical Co (Santen Pharmaceutical Co) Business Description
Santen Pharmaceutical Co Ltd is a drug manufacturing company that focuses on ophthalmic products. The company reports two primary operating segments: prescription ophthalmic pharmaceuticals and other. The pharmaceuticals segment includes over-the-counter pharmaceuticals, while the other segment includes medical devices. The vast majority of Santen's revenue is derived from its prescription ophthalmic pharmaceuticals segment, which manufactures and distributes prescription and OTC pharmaceuticals. Most of Santen's sales are generated in Japan, followed by other Asian countries.
Santen Pharmaceutical Co (Santen Pharmaceutical Co) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SNPHY has been successfully added to your 