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.
Roivant Sciences's Sloan Ratio for the quarter that ended in Dec. 2024 was 60.29%.
As of Dec. 2024, Roivant Sciences has a Sloan Ratio of 60.29%, indicating there is a warning stage of accrual build up.
Roivant Sciences Sloan Ratio % Historical Data
The historical data trend for Roivant Sciences'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 Roivant Sciences's Sloan Ratio %
For the Biotechnology subindustry, Roivant Sciences'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.
Roivant Sciences's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Roivant Sciences's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Roivant Sciences'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.
Roivant Sciences's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Roivant Sciences's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -151.115 (Mar. 2024 ) + 95.297 (Jun. 2024 ) + -230.184 (Sep. 2024 ) + 169.381 (Dec. 2024 ) = $-116.6 Mil.
Roivant Sciences's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -108.457 (Mar. 2024 ) + -192.829 (Jun. 2024 ) + -266.806 (Sep. 2024 ) + -207.251 (Dec. 2024 ) = $-775.3 Mil.
Roivant Sciences's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 6.928 (Mar. 2024 ) + -0.965 (Jun. 2024 ) + -3293.594 (Sep. 2024 ) + 454.074 (Dec. 2024 ) = $-2,833.6 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.
Roivant Sciences (NAS:ROIV) 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, Roivant Sciences has a Sloan Ratio of 60.29%, indicating there is a warning stage of accrual build up.
Roivant Sciences Sloan Ratio % Related Terms
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Roivant Sciences Ltd is a commercial-stage biopharmaceutical company dedicated to improving the delivery of healthcare to patients. It also incubates discovery-stage companies and health technology startups complementary to its biopharmaceutical business. Its drug candidate VTAMA (tapinarof) is a treatment of plaque psoriasis in adult patients and is in its commercial stage. The other drug candidates in their different stages of development are; Batoclimab, IMVT-1402, Brepocitinib, Namilumab, and others.
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