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 Adverum Biotechnologies's Sloan Ratio %
For the Biotechnology subindustry, Adverum Biotechnologies'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.
Adverum Biotechnologies's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Adverum Biotechnologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Adverum Biotechnologies's Sloan Ratio % falls into.
Adverum Biotechnologies 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.
Adverum Biotechnologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Adverum Biotechnologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -31.51 (Jun. 2023 ) + -32.885 (Sep. 2023 ) + -23.714 (Dec. 2023 ) + -24.787 (Mar. 2024 ) = $-112.90 Mil.
Adverum Biotechnologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -23.249 (Jun. 2023 ) + -23.913 (Sep. 2023 ) + -21.328 (Dec. 2023 ) + -23.245 (Mar. 2024 ) = $-91.74 Mil.
Adverum Biotechnologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 67.023 (Jun. 2023 ) + 18.197 (Sep. 2023 ) + -9.878 (Dec. 2023 ) + -22.027 (Mar. 2024 ) = $53.32 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.
Adverum Biotechnologies (NAS:ADVM) 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, Adverum Biotechnologies has a Sloan Ratio of -27.81%, indicating earnings are more likely to be made up of accruals.
Adverum Biotechnologies Sloan Ratio % Related Terms
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Adverum Biotechnologies (Adverum Biotechnologies) Business Description
Adverum Biotechnologies Inc is a U.S.-based clinical-stage gene therapy company. It develops gene therapy product candidates intended to provide durable efficacy by inducing sustained expression of a therapeutic protein. The company primarily generates revenue through license, research and collaboration arrangements with its strategic partners. Its lead product candidate is ADVM-022 which is a single, in-office intravitreal (IVT) injection gene therapy designed to deliver long-term durable levels of aflibercept associated with a robust, sustained treatment response, reducing the treatment burden and fluctuations in macular fluid associated with frequent anti-vascular endothelial growth factor (VEGF) injections. It has one segment developing and commercializing gene therapeutics.
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