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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.
Deterra Royalties's Sloan Ratio for the quarter that ended in Dec. 2025 was -26.09%.
Warning Sign:
When sloan ratio (57.44)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2025, Deterra Royalties has a Sloan Ratio of -26.09%, indicating earnings are more likely to be made up of accruals.
Deterra Royalties (ASX:DRR) 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, Deterra Royalties has a Sloan Ratio of -26.09%, indicating earnings are more likely to be made up of accruals.
Deterra Royalties Sloan Ratio % Related Terms
Deterra Royalties Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Deterra Royalties'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.
Deterra Royalties Sloan Ratio % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.
Deterra Royalties Sloan Ratio % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Deterra Royalties'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.
Deterra Royalties's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Deterra Royalties's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 91.783 (Jun. 2025 ) + 87.165 (Dec. 2025 ) = A$178.9 Mil.
Deterra Royalties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 86.215 (Jun. 2025 ) + 86.402 (Dec. 2025 ) = A$172.6 Mil.
Deterra Royalties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -1.924 (Jun. 2025 ) + 104.743 (Dec. 2025 ) = A$102.8 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.
Deterra Royalties (ASX:DRR) has a Sloan Ratio % of -26.09% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Deterra Royalties and its competitors.
Is Deterra Royalties' Sloan Ratio % too high?
Deterra Royalties' current Sloan Ratio % is -26.09%. Overall, Deterra Royalties has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Deterra Royalties' Sloan Ratio % compare to competitors?
Deterra Royalties' Sloan Ratio % of -26.09% can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Sloan Ratio % depends on the Metals & Mining 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 Deterra Royalties and its competitors. Deterra Royalties's current Sloan Ratio % is -26.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deterra Royalties stock overvalued right now?
Based on GuruFocus' analysis, Deterra Royalties (ASX:DRR) is currently considered Fairly Valued. The stock's GF Value™ is A$4.03, compared to a current price of A$4.27 — trading 6% above its estimated fair value. The current Sloan Ratio % is -26.09%. Deterra Royalties' overall GF Score™ is 64/100 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 Deterra Royalties (ASX:DRR), the current Sloan Ratio % is -26.09% 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 Deterra Royalties (ASX:DRR) Overvalued in 2026?
Based on GuruFocus' analysis, Deterra Royalties stock appears to be overvalued.
The current stock price of A$4.27 is trading 6% above its estimated GF Value™ of A$4.03.
GuruFocus considers Deterra Royalties to be Fairly Valued.
Key valuation signals for ASX:DRR:
Sloan Ratio %: -26.09%
GF Value™: A$4.03 vs. price of A$4.27 (6% above fair value)
No single metric tells the full story. See the ASX:DRR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deterra Royalties was spun out from Iluka Resources in October 2020, with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area in Western Australia. This includes the North Flank mine, producing around 60 million metric tons of iron ore a year, and the South Flank mine, which produces around 80 million metric tons. It also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Consistent with its strategy to grow into a diversified royalty firm, its Trident Royalties purchase is likely to provide modest diversification from iron ore.
64GF Score
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