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.
Pacira BioSciences's Sloan Ratio for the quarter that ended in Sep. 2024 was -14.46%.
As of Sep. 2024, Pacira BioSciences has a Sloan Ratio of -14.46%, indicating there is a warning stage of accrual build up.
Pacira BioSciences Sloan Ratio % Historical Data
The historical data trend for Pacira BioSciences'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 Pacira BioSciences's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Pacira BioSciences'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.
Pacira BioSciences's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Pacira BioSciences's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pacira BioSciences's Sloan Ratio % falls into.
Pacira BioSciences 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.
Pacira BioSciences's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Pacira BioSciences's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 24.87 (Dec. 2023 ) + 8.979 (Mar. 2024 ) + 18.886 (Jun. 2024 ) + -143.466 (Sep. 2024 ) = $-90.7 Mil.
Pacira BioSciences's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 47.584 (Dec. 2023 ) + 49.101 (Mar. 2024 ) + 53.236 (Jun. 2024 ) + 53.92 (Sep. 2024 ) = $203.8 Mil.
Pacira BioSciences's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 8.374 (Dec. 2023 ) + -15.53 (Mar. 2024 ) + -15.215 (Jun. 2024 ) + -52.163 (Sep. 2024 ) = $-74.5 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.
Pacira BioSciences (NAS:PCRX) 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 Sep. 2024, Pacira BioSciences has a Sloan Ratio of -14.46%, indicating there is a warning stage of accrual build up.
Pacira BioSciences Sloan Ratio % Related Terms
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Pacira BioSciences Inc is a provider of non-opioid pain management and regenerative health solutions dedicated to advancing and improving outcomes for healthcare practitioners and their patients. The company has three commercialized non-opioid treatments: EXPAREL a long-acting, local analgesic currently approved for postsurgical pain management; ZILRETTA, an extended-release, intra-articular, corticosteroid injection indicated for the management of osteoarthritis; iovera, a novel, handheld device for delivering immediate, long-acting, drug-free pain control using precise, controlled doses of cold temperature to a targeted nerve.
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