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.
Anacor Pharmaceuticals's Sloan Ratio for the quarter that ended in Mar. 2016 was -34.16%.
As of Mar. 2016, Anacor Pharmaceuticals has a Sloan Ratio of -34.16%, indicating earnings are more likely to be made up of accruals.
Anacor Pharmaceuticals Sloan Ratio % Historical Data
* 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 Anacor Pharmaceuticals's Sloan Ratio %
For the Biotechnology subindustry, Anacor Pharmaceuticals'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.
Anacor Pharmaceuticals's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Anacor Pharmaceuticals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Anacor Pharmaceuticals's Sloan Ratio % falls into.
Anacor Pharmaceuticals 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.
Anacor Pharmaceuticals's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Anacor Pharmaceuticals's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was -13.196 (Jun. 2015 ) + -16.177 (Sep. 2015 ) + -18.914 (Dec. 2015 ) + -16.147 (Mar. 2016 ) = $-64.43 Mil.
Anacor Pharmaceuticals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was -23.746 (Jun. 2015 ) + -24.219 (Sep. 2015 ) + -13.985 (Dec. 2015 ) + -9.588 (Mar. 2016 ) = $-71.54 Mil.
Anacor Pharmaceuticals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was 7.417 (Jun. 2015 ) + 25.77 (Sep. 2015 ) + 52.016 (Dec. 2015 ) + -22.075 (Mar. 2016 ) = $63.13 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.
Anacor Pharmaceuticals (NAS:ANAC) 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. 2016, Anacor Pharmaceuticals has a Sloan Ratio of -34.16%, indicating earnings are more likely to be made up of accruals.
Anacor Pharmaceuticals Sloan Ratio % Related Terms
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Anacor Pharmaceuticals (Anacor Pharmaceuticals) Business Description
Anacor Pharmaceuticals Inc was incorporated in Delaware in December 2000 and began business operations in March 2002. It is a biopharmaceutical company engaged in discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. It has discovered, synthesized and developed eight molecules that are currently in development. The Company's main product candidates include two topically administered dermatologic compounds, tavaborole (formerly referred to as AN2690) and AN2728. Tavaborole is a topical treatment for onychomycosis, a fungal infection of the nail and nail bed. AN2728 is its main topical anti-inflammatory product candidate for the treatment of atopic dermatitis and psoriasis, chronic inflammatory skin diseases that affect millions of people. In addition, the Company has three other wholly-owned clinical product candidates; AN2718 and AN2898, which are backup compounds to tavaborole and AN2728, respectively, and AN3365 (formerly referred to as GSK2251052, or GSK '052), an antibiotic for the treatment of infections caused by Gram-negative bacteria, which previously was licensed to GlaxoSmithKline LLC (GSK). It has also discovered three other compounds that it has out-licensed for further development; one is licensed to Eli Lilly and Company (Lilly), for the treatment of an animal health indication; a second compound, AN5568, also referred to as SCYX-7158, is licensed to Drugs for Neglected Diseases initiative (DNDi), for human African trypanosomiasis (HAT, or sleeping sickness); and a third compound is licensed to GSK for tuberculosis (TB). As of February 1, 2014, the company was the owner of record, either solely or with a collaborator, of 23 issued U.S. patents. The Company and its third-party manufacturers are subject to periodic inspections of facilities by the FDA and other authorities, including procedures and operations used in the testing and manufacture of its products to assess its compliance with applicable regulations.
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