NGM Biopharmaceuticals (NGM Biopharmaceuticals) Sloan Ratio % : -73.70% (As of Dec. 2023)

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What is NGM Biopharmaceuticals Sloan Ratio %?

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.

NGM Biopharmaceuticals's Sloan Ratio for the quarter that ended in Dec. 2023 was -73.70%.

Warning Sign:

When sloan ratio (-73.7)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Dec. 2023, NGM Biopharmaceuticals has a Sloan Ratio of -73.70%, indicating earnings are more likely to be made up of accruals.

NGM Biopharmaceuticals Sloan Ratio % Historical Data

The historical data trend for NGM Biopharmaceuticals'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.

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NGM Biopharmaceuticals Sloan Ratio % Chart

NGM Biopharmaceuticals Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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-13.23

9.73

6.10

-10.59

-73.70

NGM Biopharmaceuticals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															-10.59	-32.51	-57.29	-52.19	-73.70

Competitive Comparison of NGM Biopharmaceuticals's Sloan Ratio %

For the Biotechnology subindustry, NGM Biopharmaceuticals'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.

NGM Biopharmaceuticals's Sloan Ratio % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, NGM Biopharmaceuticals's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where NGM Biopharmaceuticals's Sloan Ratio % falls into.

NGM Biopharmaceuticals 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.

NGM Biopharmaceuticals's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-142.375	-	-132.202
	-	114.287)	/	168.868
	=	-73.70%

NGM Biopharmaceuticals's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(-142.375	-	-132.202
	-	114.287)	/	168.868
	=	-73.70%

NGM Biopharmaceuticals's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -47.647 (Mar. 2023 ) + -38.261 (Jun. 2023 ) + -28.797 (Sep. 2023 ) + -27.67 (Dec. 2023 ) = $-142.38 Mil.
NGM Biopharmaceuticals's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -41.827 (Mar. 2023 ) + -40.248 (Jun. 2023 ) + -27.164 (Sep. 2023 ) + -22.963 (Dec. 2023 ) = $-132.20 Mil.
NGM Biopharmaceuticals's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 35.641 (Mar. 2023 ) + 24.585 (Jun. 2023 ) + 26.869 (Sep. 2023 ) + 27.192 (Dec. 2023 ) = $114.29 Mil.

NGM Biopharmaceuticals (NAS:NGM) 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.

According to How to Beat the Market with the Sloan Ratio:

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, NGM Biopharmaceuticals has a Sloan Ratio of -73.70%, indicating earnings are more likely to be made up of accruals.

NGM Biopharmaceuticals Sloan Ratio % Related Terms

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NGM Biopharmaceuticals (NGM Biopharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » NGM Biopharmaceuticals Inc (NAS:NGM) » Definitions » Sloan Ratio %

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0IK:Germany

Address

333 Oyster Point Boulevard, South San Francisco, CA, USA, 94080

Website

https://www.ngmbio.com

NGM Biopharmaceuticals Inc is a clinical-stage biopharmaceutical company. It is engaged in developing novel therapeutics based on scientific understanding of key biological pathways for the treatment of cardio-metabolic, liver, oncologic and ophthalmic diseases. The company's products include NGM282 (aldafermin), NGM313 (MK-3655), NGM120, NGM120, NGM621, and NGM395, all these are focused on NASH, diabetes, oncology, AMD and metabolic disease.

Executives

Column Group L P	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
David V Goeddel	director, 10 percent owner	C/O COLUMN GROUP LP, 1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Jean-frederic Viret	officer: Chief Financial Officer	ANESIVA, INC., 650 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080
Irene Perlich	officer: Principal Accounting Officer	C/O NGM BIOPHARMACEUTICALS, INC., 333 OYSTER POINT BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Jin-long Chen	director, officer: Chief Scientific Officer	630 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080
Column Group Opportunity Iii Gp, Lp	10 percent owner	1 LETTERMAN DRIVE, BUILDING D, SUITE DM-900, SAN FRANCISCO CA 94129
Tcg Opportunity Iii Gp, Llc	10 percent owner	1 LETTERMAN DRIVE, BUILDING D, SUITE DM-900, SAN FRANCISCO CA 94129
Column Group Opportunity Iii, Lp	10 percent owner	1 LETTERMAN DRIVE, BUILDING D, SUITE DM-900, SAN FRANCISCO CA 94129
Column Group Iv-a, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Column Group Iv Gp, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Column Group Iv, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Tcg Iv Gp, Llc	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Column Group Iii-a, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
Column Group Iii, Lp	10 percent owner	1700 OWENS STREET, SUITE 500, SAN FRANCISCO CA 94158
David J Woodhouse	director, officer: CEO and acting CFO	630 GATEWAY BLVD., SOUTH SAN FRANCISCO CA 94080