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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.
Vanda Pharmaceuticals's Sloan Ratio for the quarter that ended in Jun. 2026 was -61.29%.
Warning Sign:
When sloan ratio (-42.11)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2026, Vanda Pharmaceuticals has a Sloan Ratio of -61.29%, indicating earnings are more likely to be made up of accruals.
Vanda Pharmaceuticals (LTS:0LKB) 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 Jun. 2026, Vanda Pharmaceuticals has a Sloan Ratio of -61.29%, indicating earnings are more likely to be made up of accruals.
Vanda Pharmaceuticals Sloan Ratio % Related Terms
Vanda Pharmaceuticals Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Vanda Pharmaceuticals'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.
LTS:0LKB vs LYEL, ZNTL, PROK: Sloan Ratio % Comparison
For the Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals Sloan Ratio % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Vanda Pharmaceuticals's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -22.586 (Sep. 2025 ) + -141.187 (Dec. 2025 ) + -48.567 (Mar. 2026 ) + -62.513 (Jun. 2026 ) = $-274.9 Mil.
Vanda Pharmaceuticals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was -31.626 (Sep. 2025 ) + -29.417 (Dec. 2025 ) + -50.218 (Mar. 2026 ) + -31.07 (Jun. 2026 ) = $-142.3 Mil.
Vanda Pharmaceuticals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 21.362 (Sep. 2025 ) + 44.866 (Dec. 2025 ) + 20.234 (Mar. 2026 ) + 33.81 (Jun. 2026 ) = $120.3 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.
Vanda Pharmaceuticals (LTS:0LKB) has a Sloan Ratio % of -61.29% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Vanda Pharmaceuticals and its competitors.
Is Vanda Pharmaceuticals' Sloan Ratio % too high?
Vanda Pharmaceuticals' current Sloan Ratio % is -61.29%. Overall, Vanda Pharmaceuticals has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' Sloan Ratio % compare to LYEL and ZNTL?
Vanda Pharmaceuticals' Sloan Ratio % of -61.29% can be compared against companies in the Biotechnology 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 Biotechnology company?
A good Sloan Ratio % depends on the Biotechnology 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 Vanda Pharmaceuticals and its competitors. Vanda Pharmaceuticals's current Sloan Ratio % is -61.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (LTS:0LKB) is currently considered Fairly Valued. The stock's GF Value™ is $5.36, compared to a current price of $5.05 — trading 5.8% below its estimated fair value. The current Sloan Ratio % is -61.29%. Vanda Pharmaceuticals' overall GF Score™ is 63/100 with 4 warning signs to review. 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 Vanda Pharmaceuticals (LTS:0LKB), the current Sloan Ratio % is -61.29% as of Jun. 2026. 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.
Is Vanda Pharmaceuticals (LTS:0LKB) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be undervalued.
The current stock price of $5.05 is trading 5.8% below its estimated GF Value™ of $5.36.
GuruFocus considers Vanda Pharmaceuticals to be Fairly Valued.
Key valuation signals for LTS:0LKB:
Sloan Ratio %: -61.29%
GF Value™: $5.36 vs. price of $5.05 (5.8% below fair value)
No single metric tells the full story. See the LTS:0LKB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
63GF Score
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