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.
Silence Therapeutics's Sloan Ratio for the quarter that ended in Mar. 2024 was 14.18%.
As of Mar. 2024, Silence Therapeutics has a Sloan Ratio of 14.18%, indicating there is a warning stage of accrual build up.
Silence Therapeutics Sloan Ratio % Historical Data
The historical data trend for Silence Therapeutics'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 Silence Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Silence Therapeutics'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.
Silence Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Silence Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Silence Therapeutics's Sloan Ratio % falls into.
Silence Therapeutics 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.
Silence Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Silence Therapeutics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -13.133 (Jun. 2023 ) + -10.21 (Sep. 2023 ) + -18.243 (Dec. 2023 ) + -2.384 (Mar. 2024 ) = $-43.97 Mil.
Silence Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -18.884 (Jun. 2023 ) + -6.03 (Sep. 2023 ) + -15.02 (Dec. 2023 ) + -9.524 (Mar. 2024 ) = $-49.46 Mil.
Silence Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -5.944 (Jun. 2023 ) + 25.53 (Sep. 2023 ) + 0.484 (Dec. 2023 ) + -49.596 (Mar. 2024 ) = $-29.53 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.
Silence Therapeutics (OTCPK:SLNCF) 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. 2024, Silence Therapeutics has a Sloan Ratio of 14.18%, indicating there is a warning stage of accrual build up.
Silence Therapeutics Sloan Ratio % Related Terms
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Silence Therapeutics (Silence Therapeutics) Business Description
Silence Therapeutics PLC is a biotechnology company focused on discovering and developing novel molecules incorporating short-interfering ribonucleic acid. its pipeline products are; SLN360 therapy designed to temporarily block a specific gene's message that would otherwise trigger an unwanted effect. By silencing the LPA gene, the levels of Lp(a) are lowered, which in turn is expected to lower the risk of heart diseases, heart attacks, and strokes, and SLN124 therapy aims to temporarily silence TMPRSS6, a gene that prevents the liver from producing a particular hormone that controls iron levels in the body hepcidin. As hepcidin increases, iron levels in the blood are expected to decrease, which may increase the production of healthy red blood cells, thereby reducing anemia.
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