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Alector (Alector) Sloan Ratio %

: -7.74% (As of Dec. 2023)
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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.

Alector's Sloan Ratio for the quarter that ended in Dec. 2023 was -7.74%.

As of Dec. 2023, Alector has a Sloan Ratio of -7.74%, indicating the company is in the safe zone and there is no funny business with accruals.


Alector Sloan Ratio % Historical Data

The historical data trend for Alector'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.

* Premium members only.

Alector Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only 10.14 16.70 -35.01 5.84 -7.74

Alector Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.84 17.05 -14.01 -8.42 -7.74

Competitive Comparison

For the Biotechnology subindustry, Alector'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.


Alector Sloan Ratio % Distribution

For the Biotechnology industry and Healthcare sector, Alector's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Alector's Sloan Ratio % falls into.



Alector 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.

Alector's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(-130.391--184.162
-101.918)/621.827
=-7.74%

Alector's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(-130.391--184.162
-101.918)/621.827
=-7.74%

Alector's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -45.857 (Mar. 2023 ) + 1.375 (Jun. 2023 ) + -44.475 (Sep. 2023 ) + -41.434 (Dec. 2023 ) = $-130.39 Mil.
Alector's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -48.548 (Mar. 2023 ) + -43.004 (Jun. 2023 ) + -46.54 (Sep. 2023 ) + -46.07 (Dec. 2023 ) = $-184.16 Mil.
Alector's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 88.701 (Mar. 2023 ) + -21.815 (Jun. 2023 ) + 16.961 (Sep. 2023 ) + 18.071 (Dec. 2023 ) = $101.92 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.


Alector  (NAS:ALEC) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2023, Alector has a Sloan Ratio of -7.74%, indicating the company is in the safe zone and there is no funny business with accruals.


Alector Sloan Ratio % Related Terms

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Alector (Alector) Business Description

Traded in Other Exchanges
Address
131 Oyster Point Boulevard, Suite 600, South San Francisco, CA, USA, 94080
Alector Inc is a clinical-stage biopharmaceutical company. It is engaged in developing a novel therapeutic approach for the treatment of neurodegeneration. The firm is involved in developing therapies that are designed to simultaneously counteract pathologies by restoring healthy immune function to the brain. Its pipeline products include AL001, AL002, AL003, and AL101.
Executives
Sara Kenkare-mitra officer: President and Head of R&D C/O ALECTOR, INC, 131 OYSTER POINT BLVD, SUITE 600, SOUTH SAN FRANCISCO CA 94080
Gary Romano officer: Chief Medical Officer TWO COMMERCE SQUARE, 2001 MARKET STREET, 28TH FLOOR, PHILADELPHIA PA 19103
Arnon Rosenthal director, officer: Chief Executive Officer C/O ALECTOR, INC., 151 OYSTER POINT BLVD., #300, SOUTH SAN FRANCISCO CA 94080
Marc Grasso officer: Chief Financial Officer C/O KURA ONCOLOGY, INC., 3033 SCIENCE PARK ROAD, SUITE 220, SAN DIEGO CA 92121
Terrance Mcguire director, 10 percent owner C/O POLARIS VENTURE PARTNERS LP, 1000 WINTER STREET, SUITE 3350, WALTHAM MA 02154
Polaris Venture Management Co. Vi, L.l.c. 10 percent owner ONE MARINA PARK DRIVE, 8TH FLOOR, BOSTON MA 02210
Richard H Scheller director C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
Paula Hammond director C/O ALECTOR, INC., 131 OYSTER POINT BLVD. SUITE 600, SOUTH SAN FRANCISCO CA 94080
Kristine Yaffe director C/O ALECTOR, INC., 131 OYSTER POINT BLVD., SUITE 600, SOUTH SAN FRANCISCO CA 94080
Tillman U. Gerngross director C/O ARSANIS, INC., 890 WINTER STREET, SUITE 230, WALTHAM MA 02451
Lavigne Louis J Jr director C/O ALLERGAN, INC., 2525 DUPONT DRIVE, IRVINE CA 92612
Elizabeth A. Garofalo director C/O ACADIA PHARMACEUTICALS INC., 12830 EL CAMINO REAL, SUITE 400, SAN DIEGO CA 92130
David M. Wehner director C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Robert King officer: Chief Development Officer 950 TOWER LANE, SUITE 900, FOSTER CITY CA 94404
Shehnaaz Suliman officer: President and COO 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080