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.
Twist Bioscience's Sloan Ratio for the quarter that ended in Dec. 2023 was -21.31%.
As of Dec. 2023, Twist Bioscience has a Sloan Ratio of -21.31%, indicating there is a warning stage of accrual build up.
Twist Bioscience Sloan Ratio % Historical Data
The historical data trend for Twist Bioscience'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 Twist Bioscience's Sloan Ratio %
For the Diagnostics & Research subindustry, Twist Bioscience'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.
Twist Bioscience's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Twist Bioscience's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Twist Bioscience's Sloan Ratio % falls into.
Twist Bioscience 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.
Twist Bioscience's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Twist Bioscience's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -59.156 (Mar. 2023 ) + -57.395 (Jun. 2023 ) + -46.243 (Sep. 2023 ) + -43.008 (Dec. 2023 ) = $-205.8 Mil.
Twist Bioscience's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -44.288 (Mar. 2023 ) + -23.412 (Jun. 2023 ) + -20.704 (Sep. 2023 ) + -22.973 (Dec. 2023 ) = $-111.4 Mil.
Twist Bioscience's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 41.16 (Mar. 2023 ) + 18.67 (Jun. 2023 ) + -2.247 (Sep. 2023 ) + 4.165 (Dec. 2023 ) = $61.7 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.
Twist Bioscience (NAS:TWST) 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, Twist Bioscience has a Sloan Ratio of -21.31%, indicating there is a warning stage of accrual build up.
Twist Bioscience Sloan Ratio % Related Terms
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Twist Bioscience (Twist Bioscience) Business Description
Twist Bioscience Corp is a synthetic biology company. It develops a disruptive DNA synthesis platform to industrialize the engineering of biology. The company's DNA synthesis platform utilizes a proprietary semiconductor-based synthetic DNA manufacturing process that synthesizes DNA on silicon instead of on traditional well-plastic plates to enable the production of high-quality synthetic DNA faster and affordable as well as overcomes inefficiencies and powers cost-effective, rapid high-throughput synthesis, enabling researchers to rapidly realize opportunities ahead. Geographically, it derives a majority of its revenue from the United States.
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