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.
Vascular Biogenics's Sloan Ratio for the quarter that ended in Jun. 2023 was -100.14%.
Warning Sign:
When sloan ratio (-94.43)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2023, Vascular Biogenics has a Sloan Ratio of -100.14%, indicating earnings are more likely to be made up of accruals.
Vascular Biogenics Sloan Ratio % Historical Data
The historical data trend for Vascular Biogenics'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 Vascular Biogenics's Sloan Ratio %
For the Biotechnology subindustry, Vascular Biogenics'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.
Vascular Biogenics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vascular Biogenics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vascular Biogenics's Sloan Ratio % falls into.
Vascular Biogenics 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.
Vascular Biogenics's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Vascular Biogenics's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -9.17 (Sep. 2022 ) + -3.272 (Dec. 2022 ) + -2.639 (Mar. 2023 ) + -0.874 (Jun. 2023 ) = $-15.96 Mil.
Vascular Biogenics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -6.821 (Sep. 2022 ) + -6.721 (Dec. 2022 ) + -1.688 (Mar. 2023 ) + -2.362 (Jun. 2023 ) = $-17.59 Mil.
Vascular Biogenics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 10.033 (Sep. 2022 ) + 5.998 (Dec. 2022 ) + 10.1 (Mar. 2023 ) + 0.186 (Jun. 2023 ) = $26.32 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.
Vascular Biogenics (NAS:VBLT) 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 Jun. 2023, Vascular Biogenics has a Sloan Ratio of -100.14%, indicating earnings are more likely to be made up of accruals.
Vascular Biogenics Sloan Ratio % Related Terms
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Vascular Biogenics (Vascular Biogenics) Business Description
Vascular Biogenics Ltd is a clinical-stage biopharmaceutical company. It is focused on the discovery, development, and commercialization of first-in-class treatments for cancer. The lead product candidate of the company is VB-111 which is a gene-based biologic which is being developed for solid tumor indications for recurrent glioblastoma, an aggressive form of brain cancer. The company is also engaged in conducting a program targeting anti-inflammatory diseases, based on the use of Lecinoxoid platform technology. The product brands of the company include VTS, Vascular Targeting Systems, Vbl, Vascular Biogenics And Vascular Therapeutics.
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