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.
* 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 Amphastar Pharmaceuticals's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Amphastar Pharmaceuticals'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.
Amphastar Pharmaceuticals's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Amphastar Pharmaceuticals's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Amphastar Pharmaceuticals's Sloan Ratio % falls into.
Amphastar Pharmaceuticals 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.
Amphastar Pharmaceuticals's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Amphastar Pharmaceuticals's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 26.124 (Jun. 2023 ) + 49.222 (Sep. 2023 ) + 36.167 (Dec. 2023 ) + 43.177 (Mar. 2024 ) = $154.7 Mil.
Amphastar Pharmaceuticals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 54.923 (Jun. 2023 ) + 64.334 (Sep. 2023 ) + 23.864 (Dec. 2023 ) + 55.291 (Mar. 2024 ) = $198.4 Mil.
Amphastar Pharmaceuticals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -508.582 (Jun. 2023 ) + -31.152 (Sep. 2023 ) + -103.049 (Dec. 2023 ) + 15.237 (Mar. 2024 ) = $-627.5 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.
Amphastar Pharmaceuticals (NAS:AMPH) 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, Amphastar Pharmaceuticals has a Sloan Ratio of 37.08%, indicating earnings are more likely to be made up of accruals.
Amphastar Pharmaceuticals Sloan Ratio % Related Terms
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Amphastar Pharmaceuticals (Amphastar Pharmaceuticals) Business Description
Amphastar Pharmaceuticals Inc is a biopharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the company sells insulin API products. The company's finished products are used in hospital or urgent care clinical settings and are contracted and distributed through group purchasing organizations and drug wholesalers. The company has two reportable segments finished pharmaceutical products and API products. Geographically the business presence of the firm is seen in the United States, China and France of which the U.S. accounts for the majority of the revenue.
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