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.
Ono Pharmaceutical Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.03%.
As of Mar. 2024, Ono Pharmaceutical Co has a Sloan Ratio of -3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Ono Pharmaceutical Co Sloan Ratio % Historical Data
The historical data trend for Ono Pharmaceutical Co'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 Ono Pharmaceutical Co's Sloan Ratio %
For the Drug Manufacturers - General subindustry, Ono Pharmaceutical Co'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.
Ono Pharmaceutical Co's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ono Pharmaceutical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ono Pharmaceutical Co's Sloan Ratio % falls into.
Ono Pharmaceutical Co 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.
Ono Pharmaceutical Co's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Ono Pharmaceutical Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 225.088 (Jun. 2023 ) + 288.633 (Sep. 2023 ) + 250.393 (Dec. 2023 ) + 116.361 (Mar. 2024 ) = $880 Mil.
Ono Pharmaceutical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -68.181 (Jun. 2023 ) + 313.565 (Sep. 2023 ) + 172.085 (Dec. 2023 ) + 328.144 (Mar. 2024 ) = $746 Mil.
Ono Pharmaceutical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -65.012 (Jun. 2023 ) + 202.259 (Sep. 2023 ) + -9.307 (Dec. 2023 ) + 191.592 (Mar. 2024 ) = $320 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.
Ono Pharmaceutical Co (OTCPK:OPHLY) 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, Ono Pharmaceutical Co has a Sloan Ratio of -3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Ono Pharmaceutical Co Sloan Ratio % Related Terms
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Ono Pharmaceutical Co (Ono Pharmaceutical Co) Business Description
Ono Pharmaceutical is a drug manufacturer with a focus on drug discovery in areas of unmet medical needs. It maintains a global business in specialty pharmaceuticals. The company breaks out its revenue of goods and products into eight segments. The vast majority of Ono's revenue is derived from its circulatory and respiratory drugs, followed by its metabolic drugs and vitamins. The company also reports revenue derived from royalties. The bulk of Ono's sales are generated in Japan, followed by the rest of Asia and Europe.
Ono Pharmaceutical Co (Ono Pharmaceutical Co) Headlines
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