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.
Niagen Bioscience's Sloan Ratio for the quarter that ended in Dec. 2024 was -5.00%.
As of Dec. 2024, Niagen Bioscience has a Sloan Ratio of -5.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Niagen Bioscience Sloan Ratio % Historical Data
The historical data trend for Niagen Bioscience'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 Niagen Bioscience's Sloan Ratio %
For the Biotechnology subindustry, Niagen Bioscience'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.
Niagen Bioscience's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Niagen Bioscience's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Niagen Bioscience's Sloan Ratio % falls into.
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.
Niagen Bioscience's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Niagen Bioscience's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -0.492 (Mar. 2024 ) + -0.015 (Jun. 2024 ) + 1.878 (Sep. 2024 ) + 7.179 (Dec. 2024 ) = $8.55 Mil.
Niagen Bioscience's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 0.295 (Mar. 2024 ) + -0.264 (Jun. 2024 ) + 3.495 (Sep. 2024 ) + 8.583 (Dec. 2024 ) = $12.11 Mil.
Niagen Bioscience's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -0.041 (Mar. 2024 ) + -0.012 (Jun. 2024 ) + -0.021 (Sep. 2024 ) + -0.069 (Dec. 2024 ) = $-0.14 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.
Niagen Bioscience (NAS:NAGE) 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. 2024, Niagen Bioscience has a Sloan Ratio of -5.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Niagen Bioscience Sloan Ratio % Related Terms
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ChromaDex Corp is a bioscience company dedicated to healthy aging. It is engaged in research on nicotinamide adenine dinucleotide (NAD+), levels of which decline with age. The company is the innovator behind NAD+ precursor nicotinamide riboside (NR), commercialized as the flagship ingredient Niagen. The company has three reportable segments namely Consumer Products, Ingredients segment, and Analytical Reference Standards and Services. The majority of the revenue is earned from the Consumer Products segment.
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