What is Teva Pharmaceutical Industries Sloan Ratio %?
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.
As of Dec. 2023, Teva Pharmaceutical Industries has a Sloan Ratio of -6.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Teva Pharmaceutical Industries 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.
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Teva Pharmaceutical Industries Sloan Ratio % Chart
Competitive Comparison of Teva Pharmaceutical Industries's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.
Teva Pharmaceutical Industries's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries's Sloan Ratio % falls into.
Teva Pharmaceutical Industries 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.
Teva Pharmaceutical Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -205 (Mar. 2023 ) + -863 (Jun. 2023 ) + 80 (Sep. 2023 ) + 429 (Dec. 2023 ) = $-559 Mil.
Teva Pharmaceutical Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -145 (Mar. 2023 ) + 324 (Jun. 2023 ) + 5 (Sep. 2023 ) + 1184 (Dec. 2023 ) = $1,368 Mil.
Teva Pharmaceutical Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 181 (Mar. 2023 ) + 302 (Jun. 2023 ) + 184 (Sep. 2023 ) + 301 (Dec. 2023 ) = $968 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.
Teva Pharmaceutical Industries (NYSE:TEVA) 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, Teva Pharmaceutical Industries has a Sloan Ratio of -6.66%, indicating the company is in the safe zone and there is no funny business with accruals.
Teva Pharmaceutical Industries Sloan Ratio % Related Terms
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Teva Pharmaceutical Industries (Teva Pharmaceutical Industries) Business Description
Teva Pharmaceutical, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the U.S. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: central nervous system with Copaxone, Ajovy and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a U.S.-based generic and specialty drug distributor.
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