Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Air China's Sloan Ratio for the quarter that ended in Mar. 2026 was -6.81%.
As of Mar. 2026, Air China has a Sloan Ratio of -6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Air China (OTCPK:AIRYY) 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, Air China has a Sloan Ratio of -6.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Air China Sloan Ratio % Related Terms
Air China Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Air China'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.
For the Airlines subindustry, Air China'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.
Air China Sloan Ratio % vs Transportation Industry
For the Transportation industry and Industrials sector, Air China's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Air China'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.
Air China's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Air China's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 33.19 (Jun. 2025 ) + 515.97 (Sep. 2025 ) + -516.843 (Dec. 2025 ) + 248.705 (Mar. 2026 ) = $281 Mil.
Air China's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1321.618 (Jun. 2025 ) + 2280.573 (Sep. 2025 ) + 1131.361 (Dec. 2025 ) + 1327.793 (Mar. 2026 ) = $6,061 Mil.
Air China's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -435.044 (Jun. 2025 ) + -461.317 (Sep. 2025 ) + -632.882 (Dec. 2025 ) + -847.094 (Mar. 2026 ) = $-2,376 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.
Air China (AIRYY) has a Sloan Ratio % of -6.81% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Air China and its competitors.
Is Air China's Sloan Ratio % too high?
Air China's current Sloan Ratio % is -6.81%. Overall, Air China has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Air China's Sloan Ratio % compare to DAL and UAL?
Air China's Sloan Ratio % of -6.81% can be compared against companies in the Transportation 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 Transportation company?
A good Sloan Ratio % depends on the Transportation 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 Air China and its competitors. Air China's current Sloan Ratio % is -6.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air China stock overvalued right now?
Based on GuruFocus' analysis, Air China (AIRYY) is currently considered Possible Value Trap. The stock's GF Value™ is $15.39, compared to a current price of $10.40 — trading 32.4% below its estimated fair value. The current Sloan Ratio % is -6.81%. Air China's overall GF Score™ is 69/100 with 5 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 Air China (AIRYY), the current Sloan Ratio % is -6.81% 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 Air China (AIRYY) Overvalued in 2026?
Based on GuruFocus' analysis, Air China stock appears to be undervalued.
The current stock price of $10.40 is trading 32.4% below its estimated GF Value™ of $15.39.
GuruFocus considers Air China to be Possible Value Trap.
Key valuation signals for AIRYY:
Sloan Ratio %: -6.81%
GF Value™: $15.39 vs. price of $10.40 (32.4% below fair value)
No single metric tells the full story. See the AIRYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air China Ltd is based in Beijing and principally provides airline and related services, which include aircraft engineering and airport ground handling. The majority of the company's revenue comes from airline operations, with a smaller portion generated from rental income. Company has two segments (a) The airline operations segment which mainly comprises the provision of air passenger and air cargo services; and (b) The other operations segment which comprises the provision of aircraft engineering and other airline-related services. Geographically, majority of its revenue is derived from Mainland China followed by International segment and Hong Kong SAR, Macau SAR and Taiwan.
69GF Score
Get the complete analysis for AIRYY
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
AIRYY has been successfully added to your 
