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.
AbCellera Biologics's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.36%.
As of Mar. 2024, AbCellera Biologics has a Sloan Ratio of -4.36%, indicating the company is in the safe zone and there is no funny business with accruals.
AbCellera Biologics Sloan Ratio % Historical Data
The historical data trend for AbCellera Biologics'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 AbCellera Biologics's Sloan Ratio %
For the Biotechnology subindustry, AbCellera Biologics'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.
AbCellera Biologics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, AbCellera Biologics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AbCellera Biologics's Sloan Ratio % falls into.
AbCellera Biologics 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.
AbCellera Biologics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
AbCellera Biologics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -30.528 (Jun. 2023 ) + -28.61 (Sep. 2023 ) + -47.15 (Dec. 2023 ) + -40.61 (Mar. 2024 ) = $-146.90 Mil.
AbCellera Biologics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 19.903 (Jun. 2023 ) + -0.106 (Sep. 2023 ) + -19.611 (Dec. 2023 ) + -41.708 (Mar. 2024 ) = $-41.52 Mil.
AbCellera Biologics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -34.39 (Jun. 2023 ) + -12.786 (Sep. 2023 ) + -24.323 (Dec. 2023 ) + 29.91 (Mar. 2024 ) = $-41.59 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.
AbCellera Biologics (NAS:ABCL) 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 Mar. 2024, AbCellera Biologics has a Sloan Ratio of -4.36%, indicating the company is in the safe zone and there is no funny business with accruals.
AbCellera Biologics Sloan Ratio % Related Terms
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AbCellera Biologics (AbCellera Biologics) Business Description
AbCellera Biologics Inc is an antibody discovery and development engine that's specifically designed to address the barriers of conventional discovery, finding the optimal clinical candidate with greater precision and speed, getting to the clinic and patients sooner. With the integrated AbCellera platform, the company's experts search a wide range of diverse antibodies to select the most effective and developable leads fast and set partners up for enduring success. The company have extensive experience forging partnerships with emerging biotechs and leading pharmaceutical companies. AbCellera leverages proprietary hardware, software, and tools along with the latest data science, to operate as strategic partners and help develop optimized solutions faster for any program.
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