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 HTG Molecular Diagnostics's Sloan Ratio %
For the Diagnostics & Research subindustry, HTG Molecular Diagnostics'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.
HTG Molecular Diagnostics's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, HTG Molecular Diagnostics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HTG Molecular Diagnostics's Sloan Ratio % falls into.
HTG Molecular Diagnostics 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.
HTG Molecular Diagnostics's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
HTG Molecular Diagnostics's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was -5.888 (Jun. 2022 ) + -4.516 (Sep. 2022 ) + -4.693 (Dec. 2022 ) + -5.055 (Mar. 2023 ) = $-20.15 Mil.
HTG Molecular Diagnostics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was -5.85 (Jun. 2022 ) + -4.595 (Sep. 2022 ) + -2.023 (Dec. 2022 ) + -4.364 (Mar. 2023 ) = $-16.83 Mil.
HTG Molecular Diagnostics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -1.413 (Jun. 2022 ) + 5.142 (Sep. 2022 ) + 3.3 (Dec. 2022 ) + -3.545 (Mar. 2023 ) = $3.48 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.
HTG Molecular Diagnostics (OTCPK:HTGMQ) 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. 2023, HTG Molecular Diagnostics has a Sloan Ratio of -62.62%, indicating earnings are more likely to be made up of accruals.
HTG Molecular Diagnostics Sloan Ratio % Related Terms
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HTG Molecular Diagnostics (HTG Molecular Diagnostics) Business Description
HTG Molecular Diagnostics Inc is a commercial-stage RNA platform-based life sciences company focused on advancing the promise of precision medicine. Its proprietary NGS-adapted chemistry and HTG EdgeSeq platform automates sample processing and can quickly, robustly, and simultaneously profile hundreds or thousands of molecular targets using a relatively small amount of biological samples, in liquid or solid forms. Its products include instruments, consumables, and software that combine to form its HTG EdgeSeq platform. The company's menu of HTG EdgeSeq molecular profiling panels is automated on its HTG EdgeSeq platform, applying genomic sequencing tools to quickly generate gene expression data using its simplified workflow for customers.
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