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.
Wuxi AppTec Co's Sloan Ratio for the quarter that ended in Mar. 2025 was 0.35%.
As of Mar. 2025, Wuxi AppTec Co has a Sloan Ratio of 0.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Wuxi AppTec Co Sloan Ratio % Historical Data
The historical data trend for Wuxi AppTec Co'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 Wuxi AppTec Co's Sloan Ratio %
For the Diagnostics & Research subindustry, Wuxi AppTec Co'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.
Wuxi AppTec Co's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Wuxi AppTec Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wuxi AppTec Co'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.
Wuxi AppTec Co's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Wuxi AppTec Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2025 was 2297.611 (Jun. 2024 ) + 2293.113 (Sep. 2024 ) + 2917.374 (Dec. 2024 ) + 3671.961 (Mar. 2025 ) = ¥11,180 Mil.
Wuxi AppTec Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2025 was 2709.176 (Jun. 2024 ) + 3412.798 (Sep. 2024 ) + 4027.422 (Dec. 2024 ) + 3195.43 (Mar. 2025 ) = ¥13,345 Mil.
Wuxi AppTec Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2025 was -1120.358 (Jun. 2024 ) + -1219.476 (Sep. 2024 ) + -2323.96 (Dec. 2024 ) + 2199.756 (Mar. 2025 ) = ¥-2,464 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.
Wuxi AppTec Co (SHSE:603259) 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 Mar. 2025, Wuxi AppTec Co has a Sloan Ratio of 0.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Wuxi AppTec Co Sloan Ratio % Related Terms
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Wuxi AppTec Co Ltd provides a portfolio of research and manufacturing services throughout the discovery, development, and manufacturing spectrum for small molecule drugs, development of computer software and databases as well as consulting services for combinatorial chemistry and pharmaceuticals. The services offered by the company include drug research and development testing, clinical research services, an end-to-end CRDMO platform for peptide, oligonucleotide, and small molecules, and integrated biology services and solutions for drug discovery. The company's reportable segments are WuXi Chemistry, which derives maximum revenue, WuXi Testing, WuXi Biology, and Others. Geographically, it derives key revenue from the United States of America, followed by China, Europe, and other regions.
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