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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.
HTG Molecular Diagnostics (OTCPK:HTGMQ) 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 Mar. 2023, HTG Molecular Diagnostics has a Sloan Ratio of -62.62%, indicating earnings are more likely to be made up of accruals.
HTG Molecular Diagnostics Sloan Ratio % Related Terms
HTG Molecular Diagnostics 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.
For the Diagnostics & Research subindustry, HTG Molecular Diagnostics'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.
HTG Molecular Diagnostics Sloan Ratio % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, HTG Molecular Diagnostics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HTG Molecular Diagnostics's Sloan Ratio % falls into.
HTG Molecular Diagnostics 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.
HTG Molecular Diagnostics's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
HTG Molecular Diagnostics's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was -5.888 (Jun. 2022 ) + -4.516 (Sep. 2022 ) + -4.693 (Dec. 2022 ) + -5.055 (Mar. 2023 ) = $-20.15 Mil.
HTG Molecular Diagnostics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was -5.85 (Jun. 2022 ) + -4.595 (Sep. 2022 ) + -2.023 (Dec. 2022 ) + -4.364 (Mar. 2023 ) = $-16.83 Mil.
HTG Molecular Diagnostics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -1.413 (Jun. 2022 ) + 5.142 (Sep. 2022 ) + 3.3 (Dec. 2022 ) + -3.545 (Mar. 2023 ) = $3.48 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.
HTG Molecular Diagnostics (HTGMQ) has a Sloan Ratio % of -62.62% as of Mar. 2023. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on HTG Molecular Diagnostics and its competitors.
Is HTG Molecular Diagnostics' Sloan Ratio % too high?
HTG Molecular Diagnostics' current Sloan Ratio % is -62.62%. Overall, HTG Molecular Diagnostics has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does HTG Molecular Diagnostics' Sloan Ratio % compare to ABMC and TMO?
HTG Molecular Diagnostics' Sloan Ratio % of -62.62% can be compared against companies in the Medical Diagnostics & Research industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Medical Diagnostics & Research company?
A good Sloan Ratio % depends on the Medical Diagnostics & Research industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on HTG Molecular Diagnostics and its competitors. HTG Molecular Diagnostics's current Sloan Ratio % is -62.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HTG Molecular Diagnostics stock overvalued right now?
HTG Molecular Diagnostics (HTGMQ) has a current Sloan Ratio % of -62.62%. The current Sloan Ratio % is -62.62%. HTG Molecular Diagnostics' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For HTG Molecular Diagnostics (HTGMQ), the current Sloan Ratio % is -62.62% as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
HTG Molecular Diagnostics Inc is a life science company whose mission is to advance precision medicine through its transcriptome-wide profiling and medicinal chemistry technologies. The company derives revenue from sales of its HTG EdgeSeq system and integrated next-generation sequencing-based HTG EdgeSeq research use only assays and from sample processing services performed in its VERI/O laboratory. The company operates in one segment and its customers and distributors are located in the United States and Europe.
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