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 Collegium Pharmaceutical's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Collegium Pharmaceutical'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.
Collegium Pharmaceutical's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Collegium Pharmaceutical's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Collegium Pharmaceutical's Sloan Ratio % falls into.
Collegium Pharmaceutical 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.
Collegium Pharmaceutical's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Collegium Pharmaceutical's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 13.007 (Jun. 2023 ) + 20.634 (Sep. 2023 ) + 31.94 (Dec. 2023 ) + 27.713 (Mar. 2024 ) = $93.3 Mil.
Collegium Pharmaceutical's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 99.722 (Jun. 2023 ) + 74.018 (Sep. 2023 ) + 73.338 (Dec. 2023 ) + 61.937 (Mar. 2024 ) = $309.0 Mil.
Collegium Pharmaceutical's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -41.717 (Jun. 2023 ) + -3.822 (Sep. 2023 ) + -25.097 (Dec. 2023 ) + -18.128 (Mar. 2024 ) = $-88.8 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.
Collegium Pharmaceutical (NAS:COLL) 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, Collegium Pharmaceutical has a Sloan Ratio of -11.39%, indicating there is a warning stage of accrual build up.
Collegium Pharmaceutical Sloan Ratio % Related Terms
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Collegium Pharmaceutical (Collegium Pharmaceutical) Business Description
Collegium Pharmaceutical Inc is a specialty pharmaceutical company. The company is engaged in developing and planning to commercialize abuse-deterrent products that incorporate its patented DETERx platform technology for the treatment of chronic pain and other diseases. The DETERx platform technology is designed to maintain the extended-release and safety profiles of highly abused drugs in the face of various methods including chewing, crushing, and dissolving. Its product portfolio includes Xtampza ER, which is an abuse-deterrent, extended-release, oral formulation of oxycodone; and Nucynta Products, which are extended-release & immediate-release formulations of tapentadol.
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