Aerovate Therapeutics (Aerovate Therapeutics) Sloan Ratio % : -17.31% (As of Mar. 2024)

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What is Aerovate Therapeutics Sloan Ratio %?

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.

Aerovate Therapeutics's Sloan Ratio for the quarter that ended in Mar. 2024 was -17.31%.

As of Mar. 2024, Aerovate Therapeutics has a Sloan Ratio of -17.31%, indicating there is a warning stage of accrual build up.

Aerovate Therapeutics Sloan Ratio % Historical Data

The historical data trend for Aerovate Therapeutics'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.

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Aerovate Therapeutics Sloan Ratio % Chart

Aerovate Therapeutics Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

67.21

-14.28

-24.03

Aerovate Therapeutics Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Sloan Ratio %	Get a 7-Day Free Trial													-44.16	-33.19	-24.14	-24.03	-17.31

Competitive Comparison of Aerovate Therapeutics's Sloan Ratio %

For the Biotechnology subindustry, Aerovate Therapeutics'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.

Aerovate Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Aerovate Therapeutics's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Aerovate Therapeutics's Sloan Ratio % falls into.

Aerovate Therapeutics 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.

Aerovate Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-75.521	-	-56.778
	-	11.876)	/	127.418
	=	-24.03%

Aerovate Therapeutics's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2024 )
	=	(-82.187	-	-69.027
	-	5.334)	/	106.821
	=	-17.31%

Aerovate Therapeutics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -19.025 (Jun. 2023 ) + -19.563 (Sep. 2023 ) + -20.413 (Dec. 2023 ) + -23.186 (Mar. 2024 ) = $-82.19 Mil.
Aerovate Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -14.943 (Jun. 2023 ) + -15.611 (Sep. 2023 ) + -14.8 (Dec. 2023 ) + -23.673 (Mar. 2024 ) = $-69.03 Mil.
Aerovate Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 3.983 (Jun. 2023 ) + -13.13 (Sep. 2023 ) + 5.648 (Dec. 2023 ) + 8.833 (Mar. 2024 ) = $5.33 Mil.

Aerovate Therapeutics (NAS:AVTE) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Mar. 2024, Aerovate Therapeutics has a Sloan Ratio of -17.31%, indicating there is a warning stage of accrual build up.

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Aerovate Therapeutics (Aerovate Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Aerovate Therapeutics Inc (NAS:AVTE) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

930 Winter Street, Suite M-500, Waltham, MA, USA, 02451

Website

https://www.aerovatetx.com

Aerovate Therapeutics Inc is a clinical-stage biopharmaceutical company focused on developing drugs that improve the lives of patients with rare cardiopulmonary disease. Its initial focus is on advancing AV-101, dry powder inhaled formulation of imatinib for the treatment of pulmonary arterial hypertension, a devastating disease impacting people in the United States and Europe.

Executives

Hunter Gillies	officer: Chief Medical Officer	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Ralph Niven	officer: Chief Development Officer	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Benjamin T Dake	officer: See Remarks	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Marinus Verwijs	officer: SENIOR VICE PRESIDENT, CMC	C/O AEROVATE THERAPEUTICS, INC., 200 BERKELEY STREET, FLOOR 18, BOSTON MA 02116
Timothy P Noyes	director, officer: Chief Executive Officer	1365 MAIN STREET, WALTHAM MA 02451
Habib J Dable	director	C/O ACCELERON PHARMA INC., 128 SIDNEY STREET, CAMBRIDGE MA 02139
Timothy Pigot	officer: Chief Commercial Officer	AEROVATE THERAPEUTICS, INC., 930 WINTER STREET, SUITE M-500, WALTHAM MA 02451
Donald J Santel	director	4362 24TH STREET, SAN FRANCISCO CA 94114
George A Eldridge	officer: See Remarks	C/O TARGANTA THERAPEUTICS CORPORATION, 222 THIRD STREET SUITE 2300, CAMBRIDGE MA 02142
Allison Dorval	director	C/O INSULET CORPORATION, 600 TECHNOLOGY PARK DRIVE, SUITE 200, BILLERICA MA 01821
Cormorant Asset Management, Lp	10 percent owner	200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Maha Katabi	director, 10 percent owner	SOFINNOVA INVESTMENTS, 3000 SAND HILL ROAD, 4-250, MENLO PARK CA 94025
Ra Capital Healthcare Fund Lp	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Ra Capital Management, L.p.	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Peter Kolchinsky	director, 10 percent owner	200 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116