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.
Compass Pathways's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Compass Pathways has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Compass Pathways Sloan Ratio % Historical Data
The historical data trend for Compass Pathways'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 Compass Pathways's Sloan Ratio %
For the Medical Care Facilities subindustry, Compass Pathways'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.
Compass Pathways's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Compass Pathways's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Compass Pathways's Sloan Ratio % falls into.
Compass Pathways 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.
Compass Pathways's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Compass Pathways's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -24.208 (Mar. 2023 ) + -28.335 (Jun. 2023 ) + -33.389 (Sep. 2023 ) + -32.532 (Dec. 2023 ) = $-118.46 Mil.
Compass Pathways's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -27.723 (Mar. 2023 ) + -24.813 (Jun. 2023 ) + -17.058 (Sep. 2023 ) + -27.782 (Dec. 2023 ) = $-97.38 Mil.
Compass Pathways's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.029 (Mar. 2023 ) + -0.017 (Jun. 2023 ) + -0.018 (Sep. 2023 ) + 0 (Dec. 2023 ) = $-0.06 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.
Compass Pathways (NAS:CMPS) 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. 2023, Compass Pathways has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Compass Pathways Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Compass Pathways's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Compass Pathways (Compass Pathways) Business Description
Compass Pathways PLC is a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health. The company is motivated by the need to find better ways to help and empower people suffering with mental health challenges who are not helped by existing therapies and are pioneering the development of a new model of psilocybin therapy, in which psilocybin is administered in conjunction with psychological support. Its focus is on treatment-resistant depression, or TRD, a subset of depressive disorder, or MDD, comprising patients who are inadequately served by the treatment paradigm. It has developed a proprietary, high-purity polymorphic crystalline formulation of psilocybin, COMP360.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CMPS has been successfully added to your 