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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.
When sloan ratio (-55.36)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Array Digital Infrastructure has a Sloan Ratio of -85.09%, indicating earnings are more likely to be made up of accruals.
Array Digital Infrastructure (NYSE:AD) 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. 2026, Array Digital Infrastructure has a Sloan Ratio of -85.09%, indicating earnings are more likely to be made up of accruals.
Array Digital Infrastructure Sloan Ratio % Related Terms
Array Digital Infrastructure 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.
For the Telecom Services subindustry, Array Digital Infrastructure'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.
Array Digital Infrastructure Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Array Digital Infrastructure's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Array Digital Infrastructure's Sloan Ratio % falls into.
Array Digital Infrastructure 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.
Array Digital Infrastructure's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 31 (Jun. 2025 ) + -38.465 (Sep. 2025 ) + 37.478 (Dec. 2025 ) + 177.795 (Mar. 2026 ) = $208 Mil.
Array Digital Infrastructure's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 325.727 (Jun. 2025 ) + -82.102 (Sep. 2025 ) + -202.062 (Dec. 2025 ) + 23.826 (Mar. 2026 ) = $65 Mil.
Array Digital Infrastructure's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -76.078 (Jun. 2025 ) + 2596.367 (Sep. 2025 ) + -8.603 (Dec. 2025 ) + 1004.222 (Mar. 2026 ) = $3,516 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.
Array Digital Infrastructure (AD) has a Sloan Ratio % of -85.09% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Array Digital Infrastructure and its competitors.
Is Array Digital Infrastructure's Sloan Ratio % too high?
Array Digital Infrastructure's current Sloan Ratio % is -85.09%. Overall, Array Digital Infrastructure has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Array Digital Infrastructure's Sloan Ratio % compare to KYIV and LBTYA?
Array Digital Infrastructure's Sloan Ratio % of -85.09% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Telecommunication Services company?
A good Sloan Ratio % depends on the Telecommunication Services industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Array Digital Infrastructure and its competitors. Array Digital Infrastructure's current Sloan Ratio % is -85.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Array Digital Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Array Digital Infrastructure (AD) is currently considered Possible Value Trap. The stock's GF Value™ is $63.51, compared to a current price of $34.93 — trading 45% below its estimated fair value. The current Sloan Ratio % is -85.09%. Array Digital Infrastructure's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Array Digital Infrastructure (AD), the current Sloan Ratio % is -85.09% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Array Digital Infrastructure (AD) Overvalued in 2026?
Based on GuruFocus' analysis, Array Digital Infrastructure stock appears to be undervalued.
The current stock price of $34.93 is trading 45% below its estimated GF Value™ of $63.51.
GuruFocus considers Array Digital Infrastructure to be Possible Value Trap.
Key valuation signals for AD:
Sloan Ratio %: -85.09%
GF Value™: $63.51 vs. price of $34.93 (45% below fair value)
No single metric tells the full story. See the AD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Array Digital Infrastructure, formerly US Cellular, sold its regional wireless operations serving about 4.4 million customers to T-Mobile in August 2025. The firm has agreed to sell most of its remaining spectrum licenses; however, it will still retain rights to C-band spectrum in several locations after these deals are closed. Array also owns a 5.5% stake in Verizon Wireless' Los Angeles operations, as well as other smaller wireless partnership interests in Oklahoma and upstate New York. The firm still operates a portfolio of about 4,400 wireless towers. Parent TDS has proposed to acquire the portion of Array that it doesn't already own in an all-stock transaction.
64GF Score
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