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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.
Ally Financial's Sloan Ratio for the quarter that ended in Mar. 2026 was 2.13%.
As of Mar. 2026, Ally Financial has a Sloan Ratio of 2.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Ally Financial (NYSE:ALLY) 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, Ally Financial has a Sloan Ratio of 2.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Ally Financial Sloan Ratio % Related Terms
Ally Financial Sloan Ratio % Historical Data
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The historical data trend for Ally Financial'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 Credit Services subindustry, Ally Financial'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.
Ally Financial Sloan Ratio % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Ally Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ally Financial'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.
Ally Financial's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Ally Financial's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 352 (Jun. 2025 ) + 398 (Sep. 2025 ) + 327 (Dec. 2025 ) + 319 (Mar. 2026 ) = $1,396 Mil.
Ally Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 947 (Jun. 2025 ) + 1202 (Sep. 2025 ) + 640 (Dec. 2025 ) + 1371 (Mar. 2026 ) = $4,160 Mil.
Ally Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 2909 (Jun. 2025 ) + -2381 (Sep. 2025 ) + -4451 (Dec. 2025 ) + -3043 (Mar. 2026 ) = $-6,966 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.
Ally Financial (ALLY) has a Sloan Ratio % of 2.13% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Ally Financial and its competitors.
Is Ally Financial's Sloan Ratio % too high?
Ally Financial's current Sloan Ratio % is 2.13%. Overall, Ally Financial has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ally Financial's Sloan Ratio % compare to FCFS and KLAR?
Ally Financial's Sloan Ratio % of 2.13% can be compared against companies in the Credit 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 Credit Services company?
A good Sloan Ratio % depends on the Credit 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 Ally Financial and its competitors. Ally Financial's current Sloan Ratio % is 2.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ally Financial stock overvalued right now?
Based on GuruFocus' analysis, Ally Financial (ALLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $38.61, compared to a current price of $46.80 — trading 21.2% above its estimated fair value. The current Sloan Ratio % is 2.13%. Ally Financial's overall GF Score™ is 69/100 with 8 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 Ally Financial (ALLY), the current Sloan Ratio % is 2.13% 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 Ally Financial (ALLY) Overvalued in 2026?
Based on GuruFocus' analysis, Ally Financial stock appears to be overvalued.
The current stock price of $46.80 is trading 21.2% above its estimated GF Value™ of $38.61.
GuruFocus considers Ally Financial to be Modestly Overvalued.
Key valuation signals for ALLY:
Sloan Ratio %: 2.13%
GF Value™: $38.61 vs. price of $46.80 (21.2% above fair value)
No single metric tells the full story. See the ALLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model that includes brokerage services.
69GF Score
Get the complete analysis for ALLY
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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