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.
Gamida Cell's Sloan Ratio for the quarter that ended in Dec. 2023 was 16.57%.
As of Dec. 2023, Gamida Cell has a Sloan Ratio of 16.57%, indicating there is a warning stage of accrual build up.
Gamida Cell Sloan Ratio % Historical Data
The historical data trend for Gamida Cell'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 Gamida Cell's Sloan Ratio %
For the Biotechnology subindustry, Gamida Cell'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.
Gamida Cell's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Gamida Cell's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gamida Cell's Sloan Ratio % falls into.
Gamida Cell 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.
Gamida Cell's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Gamida Cell's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -20.96 (Mar. 2023 ) + -31.676 (Jun. 2023 ) + -1.519 (Sep. 2023 ) + -8.841 (Dec. 2023 ) = $-63.00 Mil.
Gamida Cell's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -22.284 (Mar. 2023 ) + -22.003 (Jun. 2023 ) + -18.57 (Sep. 2023 ) + -16.263 (Dec. 2023 ) = $-79.12 Mil.
Gamida Cell's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.827 (Mar. 2023 ) + 0.006 (Jun. 2023 ) + 0.282 (Sep. 2023 ) + -0.271 (Dec. 2023 ) = $-0.81 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.
Gamida Cell (OTCPK:GMDAQ) 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, Gamida Cell has a Sloan Ratio of 16.57%, indicating there is a warning stage of accrual build up.
Gamida Cell Sloan Ratio % Related Terms
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Gamida Cell Ltd is a clinical-stage biopharmaceutical company that is pioneering a diverse immunotherapy pipeline of potentially curative cell therapy candidates for patients with solid tumors and blood cancers and other serious blood diseases. The company applies a proprietary expansion platform leveraging the properties of nicotinamide, or NAM, to allogeneic cell sources including umbilical cord blood-derived cells and natural killer, or NK, cells to create cell therapy candidates with the potential to redefine standards of care. Its primary product candidate is Omidubicel, an advanced cell therapy candidate for allogeneic hematopoietic stem cell transplant and GDA-201 is the company's lead investigational NK cell-based cancer immunotherapy product candidate.
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