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.
Theravance Biopharma's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.18%.
As of Dec. 2023, Theravance Biopharma has a Sloan Ratio of 1.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Theravance Biopharma Sloan Ratio % Historical Data
The historical data trend for Theravance Biopharma'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 Theravance Biopharma's Sloan Ratio %
For the Biotechnology subindustry, Theravance Biopharma'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.
Theravance Biopharma's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Theravance Biopharma's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Theravance Biopharma's Sloan Ratio % falls into.
Theravance Biopharma 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.
Theravance Biopharma's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Theravance Biopharma's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -22.088 (Mar. 2023 ) + -15.645 (Jun. 2023 ) + -8.95 (Sep. 2023 ) + -8.51 (Dec. 2023 ) = $-55.19 Mil.
Theravance Biopharma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -11.221 (Mar. 2023 ) + -12.436 (Jun. 2023 ) + -2.486 (Sep. 2023 ) + -0.854 (Dec. 2023 ) = $-27.00 Mil.
Theravance Biopharma's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -43.046 (Mar. 2023 ) + 11.047 (Jun. 2023 ) + -0.021 (Sep. 2023 ) + -0.677 (Dec. 2023 ) = $-32.70 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.
Theravance Biopharma (NAS:TBPH) 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, Theravance Biopharma has a Sloan Ratio of 1.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Theravance Biopharma Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Theravance Biopharma's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Theravance Biopharma (Theravance Biopharma) Business Description
Theravance Biopharma Inc is a diversified biopharmaceutical company focused on the discovery, development, and commercialization of organ-selective medicines. Its purpose is to pioneer a new generation of small-molecule drugs designed to better meet patient needs. Its research is focused on the areas of inflammation and immunology. The firm applies organ-selective expertise to target disease biologically, to discover and develop medicines that may expand the therapeutic index with the goal of maximizing efficacy and limiting systemic side effects. The company develops lung-selective medicines to treat respiratory disease, including FDA-approved YUPELRI (revefenacin) inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD).
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TBPH has been successfully added to your 