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.
Applied BioCode's Sloan Ratio for the quarter that ended in Dec. 2024 was 0.50%.
As of Dec. 2024, Applied BioCode has a Sloan Ratio of 0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Applied BioCode Sloan Ratio % Historical Data
The historical data trend for Applied BioCode'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 Applied BioCode's Sloan Ratio %
For the Medical Devices subindustry, Applied BioCode'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.
Applied BioCode's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Applied BioCode's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Applied BioCode'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.
Applied BioCode's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Applied BioCode's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -63.12 (Mar. 2024 ) + -50.007 (Jun. 2024 ) + -76.829 (Sep. 2024 ) + -70.851 (Dec. 2024 ) = NT$-260.8 Mil.
Applied BioCode's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -58.177 (Mar. 2024 ) + -32.178 (Jun. 2024 ) + -59.347 (Sep. 2024 ) + -58.034 (Dec. 2024 ) = NT$-207.7 Mil.
Applied BioCode's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 115.597 (Mar. 2024 ) + -3.706 (Jun. 2024 ) + -0.436 (Sep. 2024 ) + -170.546 (Dec. 2024 ) = NT$-59.1 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.
Applied BioCode (TPE:6598) 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, Applied BioCode has a Sloan Ratio of 0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Applied BioCode Sloan Ratio % Related Terms
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Applied BioCode Corp is engaged in designing, developing, manufacturing, and commercializing multiplex testing products for the in-vitro diagnostics market. The company's in-vitro diagnostic products focus on the molecular infectious disease segment of the market with assays that detect pathogens for gastrointestinal tract infections, respiratory infections, and sexually transmitted infections. The firm's products include barcoded magnetic bead technology (BMB). The BMB technology and detection systems assist in the development of multiplexed nucleic acids or protein detection assays. The company also develops applications for other areas of the diagnostics industry including life science research, agricultural testing, and veterinary markets.
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