Better Therapeutics (Better Therapeutics) Sloan Ratio % : -38.91% (As of Sep. 2023)

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What is Better Therapeutics 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.

Better Therapeutics's Sloan Ratio for the quarter that ended in Sep. 2023 was -38.91%.

Warning Sign:

When sloan ratio (-42.06)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Sep. 2023, Better Therapeutics has a Sloan Ratio of -38.91%, indicating earnings are more likely to be made up of accruals.

Better Therapeutics Sloan Ratio % Historical Data

The historical data trend for Better Therapeutics'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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Better Therapeutics Sloan Ratio % Chart

Better Therapeutics Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Sloan Ratio %

64.93

26.49

-16.57

-42.06

Better Therapeutics Quarterly Data
	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Sloan Ratio %	Get a 7-Day Free Trial									-18.26	-42.06	-70.28	-70.72	-38.91

Competitive Comparison of Better Therapeutics's Sloan Ratio %

For the Biotechnology subindustry, Better Therapeutics'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.

Better Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry

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

* The bar in red indicates where Better Therapeutics's Sloan Ratio % falls into.

Better Therapeutics 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.

Better Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2022 )	-	Cash Flow from Operations (A: Dec. 2022 )
	-	Cash Flow from Investing (A: Dec. 2022 ))	/	Total Assets (A: Dec. 2022 )
	=	(-39.76	-	-28.93
	-	-1.18)	/	22.943
	=	-42.06%

Better Therapeutics's Sloan Ratio for the quarter that ended in Sep. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Sep. 2023 )
	=	(-31.573	-	-26.083
	-	-1.318)	/	10.722
	=	-38.91%

Better Therapeutics's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -8.765 (Dec. 2022 ) + -9.357 (Mar. 2023 ) + -7.589 (Jun. 2023 ) + -5.862 (Sep. 2023 ) = $-31.57 Mil.
Better Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -6.337 (Dec. 2022 ) + -8.716 (Mar. 2023 ) + -5.087 (Jun. 2023 ) + -5.943 (Sep. 2023 ) = $-26.08 Mil.
Better Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -0.36 (Dec. 2022 ) + -0.521 (Mar. 2023 ) + -0.503 (Jun. 2023 ) + 0.066 (Sep. 2023 ) = $-1.32 Mil.

Better Therapeutics (OTCPK:BTTX) 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 Sep. 2023, Better Therapeutics has a Sloan Ratio of -38.91%, indicating earnings are more likely to be made up of accruals.

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Better Therapeutics (Better Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Better Therapeutics Inc (OTCPK:BTTX) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

548 Market Street, Suite 49404, San Francisco, CA, USA, 94104

Website

https://www.bettertx.com

Better Therapeutics Inc is a prescription digital therapeutics company developing a novel form of cognitive behavioural therapy to address the root causes of cardiometabolic diseases. The company has developed a proprietary platform for the development of FDA-regulated, software-based solutions for type 2 diabetes, heart disease and other conditions.

Executives

Elder Granger	director	5176 S. LEWISTON WAY, CENTENNIAL CO 80015
Mark A. Berman	officer: Chief Medical Officer	548 MARKET STREET, #49404, SAN FRANCISCO CA 94104
Geoffrey M. Parker	director	15 RIORDAN PLACE, MENLO PARK CA 94025
Frank Karbe	director, officer: See Remarks	C/O MYOVANT SCIENCES INC., 2000 SIERRA POINT PARKWAY, 9TH FLOOR, BRISBANE CA 94005
David P Perry	director, 10 percent owner, officer: See Remarks	1020 EAST MEADOW CIRCLE, PALO ALTO CA 94303
Andrew J. Armanino	director	C/O CALIFORNIA BANCORP, 1300 CLAY STREET, FIFTH FLOOR, OAKLAND CA 94612
Georgianna Maule-ffinch 2015 Trust	10 percent owner	C/O BETTER THERAPEUTICS, INC., 548 MARKET STREET, #49404, SAN FRANCISCO CA 94104
Mark Heinen	officer: See Remarks	548 MARKET STREET, #49404, SAN FRANCISCO CA 94104
Risa J Lavizzo-mourey	director	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Kevin J Appelbaum	director, 10 percent owner, officer: Chief Executive Officer	4160 DUBLIN BLVD., SUITE 200, DUBLIN CA 94568
Suying Liu	director	311 WEST 43RD STREET, 12TH FLOOR, NEW YORK NY 10036
Justin Zamirowski	officer: Chief Commercial Officer	548 MARKET STREET, #49404, SAN FRANCISCO CA 94104
Kristin Wynholds	officer: Chief Product Officer	548 MARKET STREET, #49404, SAN FRANCISCO CA 94104
Richard H Carmona	director	1221 BROADWAY, OAKLAND CA 94612
David P. Perry 2015 Trust	10 percent owner	548 MARKET STREET, #49404, SAN FRANCISCO CA 94104