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.
Alk-Abello AS's Sloan Ratio for the quarter that ended in Sep. 2024 was 1.64%.
As of Sep. 2024, Alk-Abello AS has a Sloan Ratio of 1.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Alk-Abello AS Sloan Ratio % Historical Data
The historical data trend for Alk-Abello AS'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 Alk-Abello AS's Sloan Ratio %
For the Biotechnology subindustry, Alk-Abello AS'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.
Alk-Abello AS's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Alk-Abello AS's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Alk-Abello AS's Sloan Ratio % falls into.
Alk-Abello AS 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.
Alk-Abello AS's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Alk-Abello AS's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 20.483 (Dec. 2023 ) + 33.82 (Mar. 2024 ) + 28.989 (Jun. 2024 ) + 31.557 (Sep. 2024 ) = $114.8 Mil.
Alk-Abello AS's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 47.697 (Dec. 2023 ) + 41.255 (Mar. 2024 ) + 37.354 (Jun. 2024 ) + 32.45 (Sep. 2024 ) = $158.8 Mil.
Alk-Abello AS's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -12.436 (Dec. 2023 ) + -25.074 (Mar. 2024 ) + -14.134 (Jun. 2024 ) + -9.675 (Sep. 2024 ) = $-61.3 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.
Alk-Abello AS (OTCPK:AKBLF) 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, Alk-Abello AS has a Sloan Ratio of 1.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Alk-Abello AS Sloan Ratio % Related Terms
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Alk-Abello AS is a biotechnology company that focuses on pharmaceutical prevention, diagnosis, and treatment of allergies. The company is focused on respiratory diseases, including allergic rhinitis and allergic asthma. Moreover, the firm specializes in venom immunotherapy for patients suffering from bee and wasp allergies. The company's treatments induce a protective immune response that provides sustained symptom relief. Its primary focus is on allergy patients whose disease is not well controlled, despite the use of symptom-relieving medication. The company operates in Europe, North America and International Markets. It derives maximum revenue from Europe.
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