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.
Zydus Lifesciences's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Zydus Lifesciences has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Zydus Lifesciences Sloan Ratio % Historical Data
The historical data trend for Zydus Lifesciences'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 Zydus Lifesciences's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Zydus Lifesciences'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.
Zydus Lifesciences's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zydus Lifesciences's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zydus Lifesciences's Sloan Ratio % falls into.
Zydus Lifesciences 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.
Zydus Lifesciences's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Zydus Lifesciences's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 10869 (Jun. 2023 ) + 8007 (Sep. 2023 ) + 7896 (Dec. 2023 ) + 11823 (Mar. 2024 ) = ₹38,595 Mil.
Zydus Lifesciences's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0 Mil.
Zydus Lifesciences's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0 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.
Zydus Lifesciences (BOM:532321) 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, Zydus Lifesciences has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Zydus Lifesciences Sloan Ratio % Related Terms
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Zydus Lifesciences (BOM:532321) Business Description
Zydus Lifesciences Ltd is a specialty and generic drug manufacturing company. The product portfolio of the group includes Active Pharmaceutical Ingredients, human formulations, Health and wellness, and Animal health and veterinary products. Its product brands include Aten, Falcigo, Nucoxia, Levoday, Metscore and Arzep among others. It has two segments Pharmaceuticals and Consumer Products. It generates majority of its revenue from the Pharmaceutical segment.
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