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.
Guardant Health's Sloan Ratio for the quarter that ended in Mar. 2022 was -5.71%.
As of Mar. 2022, Guardant Health has a Sloan Ratio of -5.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Guardant Health Sloan Ratio % Historical Data
The historical data trend for Guardant Health'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.
Guardant Health Annual Data
Trend
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Sloan Ratio %
46.49
23.86
30.03
20.57
-6.06
Guardant Health Quarterly Data
Dec16
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Sloan Ratio %
12.15
-7.46
-5.53
-6.06
-5.71
Competitive Comparison
For the Diagnostics & Research subindustry, Guardant Health'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.
Guardant Health Sloan Ratio % Distribution
For the Medical Diagnostics & Research industry and Healthcare sector, Guardant Health's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Guardant Health's Sloan Ratio % falls into.
Guardant Health 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.
Guardant Health's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Guardant Health's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was -97.575 (Jun. 2021 ) + -107.526 (Sep. 2021 ) + -90.911 (Dec. 2021 ) + -123.228 (Mar. 2022 ) = $-419.2 Mil.
Guardant Health's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was -62.593 (Jun. 2021 ) + -53.145 (Sep. 2021 ) + -76.988 (Dec. 2021 ) + -28.619 (Mar. 2022 ) = $-221.3 Mil.
Guardant Health's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was 127.066 (Jun. 2021 ) + -47.394 (Sep. 2021 ) + -266.697 (Dec. 2021 ) + 110.808 (Mar. 2022 ) = $-76.2 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.
Guardant Health (NAS:GH) 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. 2022, Guardant Health has a Sloan Ratio of -5.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Guardant Health Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Guardant Health's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Guardant Health, based in Redwood City, California, provides cancer blood tests and analytics for clinical and research use, and the firm maintains research partnerships with large biopharmaceutical companies. The company offers Guardant 360, a blood-based (liquid biopsy) test for treatment selection in advanced stage cancer, and Guardant Omni, a broader gene panel for immuno-oncology research. The company's pipeline includes Guardant Reveal (formerly Lunar-1), for cancer recurrence detection in survivors, and Lunar-2, a liquid biopsy for early detection of cancer in higher-risk individuals, with an initial focus on colorectal cancer. Additionally, Guardant offers research development services. The United States accounts for 90% of total revenue, and other markets the remaining 10%.
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
Premium Gurus 
1.21(3.29%) Volume: 1,806,277 8:08PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
NAS:GH has been successfully added to your 
