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.
Clovis Oncology's Sloan Ratio for the quarter that ended in Sep. 2022 was -21.93%.
As of Sep. 2022, Clovis Oncology has a Sloan Ratio of -21.93%, indicating there is a warning stage of accrual build up.
Clovis Oncology Sloan Ratio % Historical Data
The historical data trend for Clovis Oncology'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 Clovis Oncology's Sloan Ratio %
For the Biotechnology subindustry, Clovis Oncology'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.
Clovis Oncology's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Clovis Oncology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Clovis Oncology's Sloan Ratio % falls into.
Clovis Oncology 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.
Clovis Oncology's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Clovis Oncology's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was -64.391 (Dec. 2021 ) + -60.169 (Mar. 2022 ) + -71.332 (Jun. 2022 ) + -56.014 (Sep. 2022 ) = $-251.9 Mil.
Clovis Oncology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was -41.343 (Dec. 2021 ) + -58.495 (Mar. 2022 ) + -35.127 (Jun. 2022 ) + -40.61 (Sep. 2022 ) = $-175.6 Mil.
Clovis Oncology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -0.069 (Dec. 2021 ) + -0.062 (Mar. 2022 ) + -0.046 (Jun. 2022 ) + -0.089 (Sep. 2022 ) = $-0.3 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.
Clovis Oncology (OTCPK:CLVSQ) 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 Sep. 2022, Clovis Oncology has a Sloan Ratio of -21.93%, indicating there is a warning stage of accrual build up.
Clovis Oncology Sloan Ratio % Related Terms
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Clovis Oncology (Clovis Oncology) Business Description
Clovis Oncology Inc is a biopharmaceutical company. It is focused on acquiring, developing, and commercializing anti-cancer agents in the United States, the EU, and additional international markets. The firm targets its development programs for the treatment of specific subsets of cancer populations. Its product candidate includes Rucaparib. Rucaparib is an oral small molecule inhibitor of poly ADP-ribose polymerase, is marketed in the United States for two indications specific to the recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer. The company has two segments U.S and ex-U.S based on geograhic areas, with majority of its revenue coming from U.S.
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