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.
Opus Genetics's Sloan Ratio for the quarter that ended in Dec. 2024 was 0.00%.
Warning Sign:
When sloan ratio (-89.97)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2024, Opus Genetics has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Opus Genetics Sloan Ratio % Historical Data
The historical data trend for Opus Genetics'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 Opus Genetics's Sloan Ratio %
For the Biotechnology subindustry, Opus Genetics'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.
Opus Genetics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Opus Genetics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Opus Genetics'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.
Opus Genetics's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Opus Genetics's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -7.106 (Mar. 2024 ) + -7.765 (Jun. 2024 ) + -7.526 (Sep. 2024 ) + -35.135 (Dec. 2024 ) = $-57.53 Mil.
Opus Genetics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -5.716 (Mar. 2024 ) + -7.292 (Jun. 2024 ) + -5.13 (Sep. 2024 ) + -7.438 (Dec. 2024 ) = $-25.58 Mil.
Opus Genetics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) + 0 (Dec. 2024 ) = $0.00 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.
Opus Genetics (NAS:IRD) 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, Opus Genetics has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Opus Genetics Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Opus Genetics's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Opus Genetics Inc is a clinical-stage ophthalmic biopharmaceutical company developing therapies to treat patients with inherited retinal diseases (IRDs) and therapies to treat patients with other retinal and refractive disorders. The pipeline includes adeno-associated virus (AAV)-based gene therapies that address mutations in genes that cause different forms of bestrophinopathy, Leber congenital amaurosis (LCA) and retinitis pigmentosa. The pipeline also includes Phentolamine Ophthalmic Solution 0.75%, a non-selective alpha-1 and alpha-2 adrenergic antagonist to reduce pupil size, and APX3330, a novel small-molecule inhibitor of Ref-1 to slow the progression of non-proliferative diabetic retinopathy.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IRD has been successfully added to your 