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.
Entrada Therapeutics's Sloan Ratio for the quarter that ended in Dec. 2024 was 25.65%.
Warning Sign:
When sloan ratio (25.65)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2024, Entrada Therapeutics has a Sloan Ratio of 25.65%, indicating earnings are more likely to be made up of accruals.
Entrada Therapeutics Sloan Ratio % Historical Data
The historical data trend for Entrada 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 Entrada Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Entrada 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.
Entrada Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Entrada Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Entrada Therapeutics'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.
Entrada Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Entrada Therapeutics's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 23.496 (Mar. 2024 ) + 55.031 (Jun. 2024 ) + -14.032 (Sep. 2024 ) + 1.131 (Dec. 2024 ) = $65.6 Mil.
Entrada Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -25.519 (Mar. 2024 ) + 39.833 (Jun. 2024 ) + -24.266 (Sep. 2024 ) + -31.605 (Dec. 2024 ) = $-41.6 Mil.
Entrada Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 26.147 (Mar. 2024 ) + -24.383 (Jun. 2024 ) + -82.927 (Sep. 2024 ) + 53.365 (Dec. 2024 ) = $-27.8 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.
Entrada Therapeutics (NAS:TRDA) 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, Entrada Therapeutics has a Sloan Ratio of 25.65%, indicating earnings are more likely to be made up of accruals.
Entrada Therapeutics Sloan Ratio % Related Terms
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Entrada Therapeutics Inc clinical-stage biopharmaceutical company aiming to transform the lives of patients by establishing a new class of medicines that engage intracellular targets that have long been considered inaccessible. The Company's Endosomal Escape Vehicle (EEV)-therapeutics are designed to enable the efficient delivery of a wide range of therapeutics into a variety of organs and tissues, resulting in an improved therapeutic index. Its pipeline includes solutions for Neuromuscular Disease, Beyond Neuromuscular, and Platform Expansion.
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