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.
T2 Biosystems's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.03%.
As of Dec. 2023, T2 Biosystems has a Sloan Ratio of -5.03%, indicating the company is in the safe zone and there is no funny business with accruals.
T2 Biosystems Sloan Ratio % Historical Data
The historical data trend for T2 Biosystems'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 T2 Biosystems's Sloan Ratio %
For the Diagnostics & Research subindustry, T2 Biosystems'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.
T2 Biosystems's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, T2 Biosystems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where T2 Biosystems's Sloan Ratio % falls into.
T2 Biosystems 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.
T2 Biosystems's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
T2 Biosystems's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -17.965 (Mar. 2023 ) + -6.347 (Jun. 2023 ) + -15.425 (Sep. 2023 ) + -10.34 (Dec. 2023 ) = $-50.08 Mil.
T2 Biosystems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -12.94 (Mar. 2023 ) + -12.387 (Jun. 2023 ) + -13.393 (Sep. 2023 ) + -9.416 (Dec. 2023 ) = $-48.14 Mil.
T2 Biosystems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.12 (Mar. 2023 ) + -0.033 (Jun. 2023 ) + -0.013 (Sep. 2023 ) + -0.026 (Dec. 2023 ) = $-0.19 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.
T2 Biosystems (NAS:TTOO) 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, T2 Biosystems has a Sloan Ratio of -5.03%, indicating the company is in the safe zone and there is no funny business with accruals.
T2 Biosystems Sloan Ratio % Related Terms
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T2 Biosystems (T2 Biosystems) Business Description
T2 Biosystems Inc provides rapid in vitro diagnostic tests to hospitals and laboratories. The company's core technology is T2 Magnetic Resonance (T2MR) technology, which can detect a variety of molecular targets directly from whole blood. T2MR technology enables the T2Dx system, which is fully automated from patient sample to result for its panels focused on bacterial and fungal infections that could cause sepsis, and its pipeline panel for Lyme disease.
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