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.
GeneDx Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was 12.27%.
As of Mar. 2024, GeneDx Holdings has a Sloan Ratio of 12.27%, indicating there is a warning stage of accrual build up.
GeneDx Holdings Sloan Ratio % Historical Data
The historical data trend for GeneDx Holdings'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 GeneDx Holdings's Sloan Ratio %
For the Health Information Services subindustry, GeneDx Holdings'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.
GeneDx Holdings's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, GeneDx Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GeneDx Holdings's Sloan Ratio % falls into.
GeneDx Holdings 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.
GeneDx Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
GeneDx Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -46.719 (Jun. 2023 ) + -42.286 (Sep. 2023 ) + -25.773 (Dec. 2023 ) + -20.239 (Mar. 2024 ) = $-135.0 Mil.
GeneDx Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -53.501 (Jun. 2023 ) + -41.228 (Sep. 2023 ) + -29.858 (Dec. 2023 ) + -16.413 (Mar. 2024 ) = $-141.0 Mil.
GeneDx Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -11.271 (Jun. 2023 ) + -27.129 (Sep. 2023 ) + -4.864 (Dec. 2023 ) + 0.843 (Mar. 2024 ) = $-42.4 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.
GeneDx Holdings (NAS:WGS) 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, GeneDx Holdings has a Sloan Ratio of 12.27%, indicating there is a warning stage of accrual build up.
GeneDx Holdings Sloan Ratio % Related Terms
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GeneDx Holdings (GeneDx Holdings) Business Description
GeneDx Holdings Corp delivers personalized and actionable health insights to inform diagnosis, direct treatment and improve drug discovery. The company is uniquely positioned to accelerate the use of genomic and large-scale clinical information to enable precision medicine as the standard of care. GeneDx is at the forefront of transforming healthcare through its various exome and genome testing and interpretation, fueled by one of the world's substantial rare disease data sets. It has two segments GeneDx and Legacy Sema4 diagnostics.
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