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.
Adicet Bio's Sloan Ratio for the quarter that ended in Sep. 2024 was 28.92%.
As of Sep. 2024, Adicet Bio has a Sloan Ratio of 28.92%, indicating there is a warning stage of accrual build up.
Adicet Bio Sloan Ratio % Historical Data
The historical data trend for Adicet Bio'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 Adicet Bio's Sloan Ratio %
For the Biotechnology subindustry, Adicet Bio'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.
Adicet Bio's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Adicet Bio's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Adicet Bio's Sloan Ratio % falls into.
Adicet Bio 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.
Adicet Bio's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Adicet Bio's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -29.489 (Dec. 2023 ) + -28.016 (Mar. 2024 ) + -29.901 (Jun. 2024 ) + -30.478 (Sep. 2024 ) = $-117.88 Mil.
Adicet Bio's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -23.486 (Dec. 2023 ) + -22.849 (Mar. 2024 ) + -23.422 (Jun. 2024 ) + -22.006 (Sep. 2024 ) = $-91.76 Mil.
Adicet Bio's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -0.136 (Dec. 2023 ) + -0.239 (Mar. 2024 ) + -0.302 (Jun. 2024 ) + -96.581 (Sep. 2024 ) = $-97.26 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.
Adicet Bio (NAS:ACET) 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 Sep. 2024, Adicet Bio has a Sloan Ratio of 28.92%, indicating there is a warning stage of accrual build up.
Adicet Bio Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Adicet Bio's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Adicet Bio Inc is a clinical-stage biotechnology company discovering and developing allogeneic gamma delta T cell therapies for cancer and other diseases. Its lead product candidate, ADI-001, a first-in-class allogeneic gamma delta T cell therapy expressing a CAR targeting CD20, is being developed for the potential treatment of autoimmune diseases and relapsed or refractory aggressive B cell non-Hodgkin's lymphoma. Their pipeline also includes its lead preclinical candidate, ADI-270, an armored gamma delta CAR T cell product candidate targeting renal cell carcinoma, with potential for other CD70+ solid tumor and hematological malignancies indications.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ACET has been successfully added to your 