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.
Intellia Therapeutics's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.29%.
As of Dec. 2023, Intellia Therapeutics has a Sloan Ratio of -4.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Intellia Therapeutics Sloan Ratio % Historical Data
The historical data trend for Intellia 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 Intellia Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Intellia 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.
Intellia Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Intellia Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Intellia Therapeutics's Sloan Ratio % falls into.
Intellia Therapeutics 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.
Intellia Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Intellia Therapeutics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -103.126 (Mar. 2023 ) + -123.681 (Jun. 2023 ) + -122.224 (Sep. 2023 ) + -132.161 (Dec. 2023 ) = $-481.19 Mil.
Intellia Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -109.328 (Mar. 2023 ) + -90.323 (Jun. 2023 ) + -101.381 (Sep. 2023 ) + -93.054 (Dec. 2023 ) = $-394.09 Mil.
Intellia Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -122.248 (Mar. 2023 ) + -34.538 (Jun. 2023 ) + 79.5 (Sep. 2023 ) + 45.939 (Dec. 2023 ) = $-31.35 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.
Intellia Therapeutics (NAS:NTLA) 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, Intellia Therapeutics has a Sloan Ratio of -4.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Intellia Therapeutics Sloan Ratio % Related Terms
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Intellia Therapeutics (Intellia Therapeutics) Business Description
Intellia Therapeutics is a gene editing company focused on the development of CRISPR/Cas9-based therapeutics. CRISPR/Cas9 stands for Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9), which is a revolutionary technology for precisely altering specific sequences of genomic DNA. Intellia is focused on using this technology to treat genetically defined diseases. It's evaluating multiple gene editing approaches using in vivo and ex vivo therapies to address diseases with high unmet medical needs, including ATTR amyloidosis, hereditary angioedema, sickle cell disease, and immuno-oncology. Intellia has formed collaborations with several companies to advance its pipeline, including narrow-moat Regeneron and wide-moat Novartis.
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