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 Monte Rosa Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Monte Rosa 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.
Monte Rosa Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Monte Rosa Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Monte Rosa Therapeutics'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.
Monte Rosa Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Monte Rosa Therapeutics's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -31.968 (Mar. 2024 ) + -30.31 (Jun. 2024 ) + -23.859 (Sep. 2024 ) + 13.437 (Dec. 2024 ) = $-72.70 Mil. Monte Rosa Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -38.165 (Mar. 2024 ) + -27.767 (Jun. 2024 ) + -20.994 (Sep. 2024 ) + 128.922 (Dec. 2024 ) = $42.00 Mil. Monte Rosa Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 9.853 (Mar. 2024 ) + -61.158 (Jun. 2024 ) + 37.749 (Sep. 2024 ) + -30.896 (Dec. 2024 ) = $-44.45 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.
Monte Rosa Therapeutics (NAS:GLUE) 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, Monte Rosa Therapeutics has a Sloan Ratio of -16.01%, indicating there is a warning stage of accrual build up.
Monte Rosa Therapeutics Sloan Ratio % Related Terms
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Monte Rosa Therapeutics Inc is a biotechnology company that specializes in developing molecular glue degraders (MGDs), a class of small molecule drugs that leverage the body's natural protein destruction mechanisms to selectively degrade therapeutically-relevant proteins. Utilizing the QuEEN platform, the company employ artificial intelligence and proprietary experimental tools to identify target proteins for degradation by MGDs. With a diverse library of over 50,000 MGD molecules, their most advanced product candidate, MRT-2359, targets the translation termination factor protein GSPT1 for potential use in MYC-driven tumors. The company's focus lies in advancing its pipeline of MGDs, aiming to provide novel therapeutic modalities for various diseases.
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