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.
Adtran Networks SE's Sloan Ratio for the quarter that ended in Dec. 2025 was -6.68%.
As of Dec. 2025, Adtran Networks SE has a Sloan Ratio of -6.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Adtran Networks SE (OTCPK:ADVOF) 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 Dec. 2025, Adtran Networks SE has a Sloan Ratio of -6.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Adtran Networks SE Sloan Ratio % Related Terms
Adtran Networks SE Sloan Ratio % Historical Data
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The historical data trend for Adtran Networks SE'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.
ADVOF vs CSCO, CIEN, MSI: Sloan Ratio % Comparison
For the Communication Equipment subindustry, Adtran Networks SE'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.
Adtran Networks SE Sloan Ratio % vs Hardware Industry
For the Hardware industry and Technology sector, Adtran Networks SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Adtran Networks SE's Sloan Ratio % falls into.
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.
Adtran Networks SE's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Adtran Networks SE's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -36.114 (Jun. 2025 ) + 11.04 (Dec. 2025 ) = $-25.1 Mil.
Adtran Networks SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 37.715 (Jun. 2025 ) + 58.055 (Dec. 2025 ) = $95.8 Mil.
Adtran Networks SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -34.904 (Jun. 2025 ) + -37.704 (Dec. 2025 ) = $-72.6 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.
Adtran Networks SE (ADVOF) has a Sloan Ratio % of -6.68% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Adtran Networks SE and its competitors.
Is Adtran Networks SE's Sloan Ratio % too high?
Adtran Networks SE's current Sloan Ratio % is -6.68%. Overall, Adtran Networks SE has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Adtran Networks SE's Sloan Ratio % compare to CSCO and CIEN?
Adtran Networks SE's Sloan Ratio % of -6.68% can be compared against companies in the Hardware 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 Hardware company?
A good Sloan Ratio % depends on the Hardware 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 Adtran Networks SE and its competitors. Adtran Networks SE's current Sloan Ratio % is -6.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adtran Networks SE stock overvalued right now?
Adtran Networks SE (ADVOF) has a current Sloan Ratio % of -6.68%. The stock's GF Value™ is $21.22, compared to a current price of $24.19 — trading 14% above its estimated fair value. The current Sloan Ratio % is -6.68%. Adtran Networks SE's overall GF Score™ is 51/100 with 4 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 Adtran Networks SE (ADVOF), the current Sloan Ratio % is -6.68% as of Dec. 2025. 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 Adtran Networks SE (ADVOF) Overvalued in 2026?
Based on GuruFocus' analysis, Adtran Networks SE stock appears to be overvalued.
The current stock price of $24.19 is trading 14% above its estimated GF Value™ of $21.22.
Key valuation signals for ADVOF:
Sloan Ratio %: -6.68%
GF Value™: $21.22 vs. price of $24.19 (14% above fair value)
No single metric tells the full story. See the ADVOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adtran Networks SE develops, manufactures, and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deliver data, storage, voice, and video services. Company segment includes: Network Solutions; and Services and Support,These systems are used by telecommunications service providers, private companies, universities, and government agencies. Some of its product categories are Open optical transport, Packet edge and aggregation, Disaggregated networking, Network virtualization, Network infrastructure assurance, and Automated network management. ADVA's geographical segments are United States, United Kingdom, Germany and Other international generating key revenue from United States.
51GF Score
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