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.
* 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 NanoString Technologies's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, NanoString Technologies'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.
NanoString Technologies's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, NanoString Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NanoString Technologies's Sloan Ratio % falls into.
NanoString Technologies 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.
NanoString Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
NanoString Technologies's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -41.644 (Dec. 2022 ) + -38.516 (Mar. 2023 ) + -40.306 (Jun. 2023 ) + -35.054 (Sep. 2023 ) = €-155.5 Mil.
NanoString Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -26.508 (Dec. 2022 ) + -33.39 (Mar. 2023 ) + -29.027 (Jun. 2023 ) + -18.458 (Sep. 2023 ) = €-107.4 Mil.
NanoString Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 22.763 (Dec. 2022 ) + 40.907 (Mar. 2023 ) + 22.436 (Jun. 2023 ) + -1.795 (Sep. 2023 ) = €84.3 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.
NanoString Technologies (FRA:0F1) 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. 2023, NanoString Technologies has a Sloan Ratio of -51.45%, indicating earnings are more likely to be made up of accruals.
NanoString Technologies Sloan Ratio % Related Terms
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NanoString Technologies (FRA:0F1) Business Description
NanoString Technologies Inc is engaged in the development, manufacturing and commercialization of instruments, consumables, and services for efficiently profiling the activity of hundreds of genes and proteins simultaneously from a single tissue sample. Its core technology includes proprietary chemistries that enable the labeling and counting of single molecules. The firm uses its technology to develop tools for scientific and clinical research, primarily in the fields of genomics and proteomics. It offers two product platforms such as nCounter Analysis System or nCounter, and GeoMx Digital Spatial Profiler or DSP system both include instruments, related consumables, and software. NanoString Technologies generates revenue from the sale of products and related services and collaborations.
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