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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.
Aroa Biosurgery's Sloan Ratio for the quarter that ended in Mar. 2026 was -8.41%.
As of Mar. 2026, Aroa Biosurgery has a Sloan Ratio of -8.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Aroa Biosurgery (ASX:ARX) 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, Aroa Biosurgery has a Sloan Ratio of -8.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Aroa Biosurgery Sloan Ratio % Related Terms
Aroa Biosurgery Sloan Ratio % Historical Data
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The historical data trend for Aroa Biosurgery'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.
ASX:ARX vs ABT, SYK, MDT: Sloan Ratio % Comparison
For the Medical Devices subindustry, Aroa Biosurgery'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.
Aroa Biosurgery Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Aroa Biosurgery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aroa Biosurgery'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.
Aroa Biosurgery's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Aroa Biosurgery's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -1.14 (Sep. 2025 ) + 5.041 (Mar. 2026 ) = A$3.90 Mil.
Aroa Biosurgery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 3.487 (Sep. 2025 ) + 5.307 (Mar. 2026 ) = A$8.79 Mil.
Aroa Biosurgery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.503 (Sep. 2025 ) + 4.067 (Mar. 2026 ) = A$3.56 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.
Aroa Biosurgery (ASX:ARX) has a Sloan Ratio % of -8.41% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Aroa Biosurgery and its competitors.
Is Aroa Biosurgery's Sloan Ratio % too high?
Aroa Biosurgery's current Sloan Ratio % is -8.41%. Overall, Aroa Biosurgery has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aroa Biosurgery's Sloan Ratio % compare to ABT and SYK?
Aroa Biosurgery's Sloan Ratio % of -8.41% can be compared against companies in the Medical Devices & Instruments 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 Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments 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 Aroa Biosurgery and its competitors. Aroa Biosurgery's current Sloan Ratio % is -8.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aroa Biosurgery stock overvalued right now?
Based on GuruFocus' analysis, Aroa Biosurgery (ASX:ARX) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.82, compared to a current price of A$0.56 — trading 32.3% below its estimated fair value. The current Sloan Ratio % is -8.41%. Aroa Biosurgery's overall GF Score™ is 57/100 with 1 warning sign 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 Aroa Biosurgery (ASX:ARX), the current Sloan Ratio % is -8.41% 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 Aroa Biosurgery (ASX:ARX) Overvalued in 2026?
Based on GuruFocus' analysis, Aroa Biosurgery stock appears to be undervalued.
The current stock price of A$0.56 is trading 32.3% below its estimated GF Value™ of A$0.82.
GuruFocus considers Aroa Biosurgery to be Significantly Undervalued.
Key valuation signals for ASX:ARX:
Sloan Ratio %: -8.41%
GF Value™: A$0.82 vs. price of A$0.56 (32.3% below fair value)
No single metric tells the full story. See the ASX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aroa Biosurgery Ltd is a soft tissue regeneration company that develops, manufactures, and sells medical devices for wound and soft tissue repair using its proprietary extracellular matrix (ECM) technology. It is focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. The company is in the business of developing, manufacturing, and selling soft tissue repair products. The company's principal market is the United States, where it has five key products for sale targeting chronic wounds, hernia, plastics, reconstructive surgery, and trauma/limb salvage/tumor surgery.
57GF Score
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