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 Sep. 2020, Cellular Biomedicine Group has a Sloan Ratio of -1.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Cellular Biomedicine Group 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 Cellular Biomedicine Group's Sloan Ratio %
For the Biotechnology subindustry, Cellular Biomedicine Group'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.
Cellular Biomedicine Group's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Cellular Biomedicine Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cellular Biomedicine Group's Sloan Ratio % falls into.
Cellular Biomedicine Group 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.
Cellular Biomedicine Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2020 was -12.687 (Dec. 2019 ) + -11.547 (Mar. 2020 ) + -13.532 (Jun. 2020 ) + -17.038 (Sep. 2020 ) = $-54.80 Mil.
Cellular Biomedicine Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2020 was -11.289 (Dec. 2019 ) + -9.295 (Mar. 2020 ) + -10.523 (Jun. 2020 ) + -13.353 (Sep. 2020 ) = $-44.46 Mil.
Cellular Biomedicine Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -2.118 (Dec. 2019 ) + -1.634 (Mar. 2020 ) + -2.991 (Jun. 2020 ) + -2.608 (Sep. 2020 ) = $-9.35 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.
Cellular Biomedicine Group (NAS:CBMG) 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. 2020, Cellular Biomedicine Group has a Sloan Ratio of -1.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Cellular Biomedicine Group Sloan Ratio % Related Terms
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Cellular Biomedicine Group (Cellular Biomedicine Group) Business Description
Cellular Biomedicine Group Inc is a biotechnology company focused on the development of proprietary cell therapies for the treatment of cancer and degenerative diseases. The company has two major cell platforms: immune cell therapy for treating a broad range of cancers using cancer vaccines, Chimeric Antigen Receptor T-cell technologies, and anti-PD-1 technologies; and human-adipose-derived mesenchymal progenitor cells for treatment of joint and autoimmune diseases. The immuno-oncology and stem cell research team is based in both China and the United States.
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