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AstraZeneca (OSTO:AZN) Sloan Ratio % : 2.97% (As of Sep. 2024)


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What is AstraZeneca Sloan Ratio %?

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.

AstraZeneca's Sloan Ratio for the quarter that ended in Sep. 2024 was 2.97%.

As of Sep. 2024, AstraZeneca has a Sloan Ratio of 2.97%, indicating the company is in the safe zone and there is no funny business with accruals.


AstraZeneca Sloan Ratio % Historical Data

The historical data trend for AstraZeneca'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.

* Premium members only.

AstraZeneca Sloan Ratio % Chart

AstraZeneca Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.59 -1.98 4.94 -3.69 -0.32

AstraZeneca Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.21 -0.33 1.82 2.80 2.97

Competitive Comparison of AstraZeneca's Sloan Ratio %

For the Drug Manufacturers - General subindustry, AstraZeneca'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.


AstraZeneca's Sloan Ratio % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, AstraZeneca's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where AstraZeneca's Sloan Ratio % falls into.



AstraZeneca 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.

AstraZeneca's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(61084.008-106114.872
--41686.886)/1037238.255
=-0.32%

AstraZeneca's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(67359.209-117252.682
--81775.272)/1073247.138
=2.97%

AstraZeneca's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 9847.296 (Dec. 2023 ) + 22686.223 (Mar. 2024 ) + 20208.449 (Jun. 2024 ) + 14617.241 (Sep. 2024 ) = kr67,359 Mil.
AstraZeneca's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 24413.088 (Dec. 2023 ) + 25882.492 (Mar. 2024 ) + 32352.395 (Jun. 2024 ) + 34604.707 (Sep. 2024 ) = kr117,253 Mil.
AstraZeneca's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -11047.435 (Dec. 2023 ) + -25122.467 (Mar. 2024 ) + -30118.664 (Jun. 2024 ) + -15486.706 (Sep. 2024 ) = kr-81,775 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.


AstraZeneca  (OSTO:AZN) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2024, AstraZeneca has a Sloan Ratio of 2.97%, indicating the company is in the safe zone and there is no funny business with accruals.


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AstraZeneca Business Description

Address
1 Francis Crick Avenue, Cambridge Biomedical Campus, Cambridge, GBR, CB2 0AA
A merger between Astra of Sweden and Zeneca Group of the United Kingdom formed AstraZeneca in 1999. The firm sells branded drugs across a number of major therapeutic areas, including gastrointestinal, diabetes, cardiovascular, respiratory, cancer, immunology and rare diseases. The majority of sales come from international markets with the United States representing close to one third of its sales.