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.
Neoleukin Therapeutics's Sloan Ratio for the quarter that ended in Sep. 2023 was -21.35%.
Warning Sign:
When sloan ratio (40.69)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Neoleukin Therapeutics has a Sloan Ratio of -21.35%, indicating earnings are more likely to be made up of accruals.
Neoleukin Therapeutics Sloan Ratio % Historical Data
* 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 Neoleukin Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Neoleukin 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.
Neoleukin Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Neoleukin Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Neoleukin Therapeutics's Sloan Ratio % falls into.
Neoleukin 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.
Neoleukin Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Neoleukin Therapeutics's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -13.445 (Dec. 2022 ) + -14.204 (Mar. 2023 ) + -2.085 (Jun. 2023 ) + -4.526 (Sep. 2023 ) = $-34.26 Mil.
Neoleukin Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -10.933 (Dec. 2022 ) + -13.033 (Mar. 2023 ) + -4.049 (Jun. 2023 ) + -4.269 (Sep. 2023 ) = $-32.28 Mil.
Neoleukin Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 8.467 (Dec. 2022 ) + 10.706 (Mar. 2023 ) + -0.411 (Jun. 2023 ) + -1.614 (Sep. 2023 ) = $17.15 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.
Neoleukin Therapeutics (NAS:NLTX) 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. 2023, Neoleukin Therapeutics has a Sloan Ratio of -21.35%, indicating earnings are more likely to be made up of accruals.
Neoleukin Therapeutics Sloan Ratio % Related Terms
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Neoleukin Therapeutics (Neoleukin Therapeutics) Business Description
Neoleukin Therapeutics Inc operates as a biopharmaceutical company. The firm generates immunotherapies using de novo protein design technology. It uses computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefits over native proteins to treat serious diseases, including cancer, inflammatory, and autoimmune disorders. Its product line comprises NL-201, which is a combined IL-2 and IL-15 agonist designed to eliminate alpha receptor binding.
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