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.
When sloan ratio (-192.92)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Else Nutrition Holdings has a Sloan Ratio of -95.27%, indicating earnings are more likely to be made up of accruals.
Else Nutrition Holdings (OTCPK:BABYD) 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, Else Nutrition Holdings has a Sloan Ratio of -95.27%, indicating earnings are more likely to be made up of accruals.
Else Nutrition Holdings Sloan Ratio % Related Terms
Else Nutrition Holdings Sloan Ratio % Historical Data
* 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 Packaged Foods subindustry, Else Nutrition Holdings'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.
Else Nutrition Holdings Sloan Ratio % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Else Nutrition Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Else Nutrition Holdings'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.
Else Nutrition Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Else Nutrition Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -1.052 (Jun. 2025 ) + -0.435 (Sep. 2025 ) + -2.347 (Dec. 2025 ) + -0.407 (Mar. 2026 ) = $-4.24 Mil.
Else Nutrition Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -1.663 (Jun. 2025 ) + 0.701 (Sep. 2025 ) + -0.67 (Dec. 2025 ) + -0.353 (Mar. 2026 ) = $-1.99 Mil.
Else Nutrition Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.001 (Jun. 2025 ) + -0.001 (Sep. 2025 ) + -0.017 (Dec. 2025 ) + -0.001 (Mar. 2026 ) = $-0.02 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.
Else Nutrition Holdings (BABYD) has a Sloan Ratio % of -95.27% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Else Nutrition Holdings and its competitors.
Is Else Nutrition Holdings' Sloan Ratio % too high?
Else Nutrition Holdings' current Sloan Ratio % is -95.27%. Overall, Else Nutrition Holdings has a GF Score™ of 20/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Else Nutrition Holdings' Sloan Ratio % compare to KHC and GIS?
Else Nutrition Holdings' Sloan Ratio % of -95.27% can be compared against companies in the Consumer Packaged Goods 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 Consumer Packaged Goods company?
A good Sloan Ratio % depends on the Consumer Packaged Goods 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 Else Nutrition Holdings and its competitors. Else Nutrition Holdings's current Sloan Ratio % is -95.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Else Nutrition Holdings stock overvalued right now?
Based on GuruFocus' analysis, Else Nutrition Holdings (BABYD) is currently considered Possible Value Trap. The stock's GF Value™ is $0.73, compared to a current price of $0.11 — trading 84.8% below its estimated fair value. The current Sloan Ratio % is -95.27%. Else Nutrition Holdings' overall GF Score™ is 20/100 with 6 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 Else Nutrition Holdings (BABYD), the current Sloan Ratio % is -95.27% 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 Else Nutrition Holdings (BABYD) Overvalued in 2026?
Based on GuruFocus' analysis, Else Nutrition Holdings stock appears to be undervalued.
The current stock price of $0.11 is trading 84.8% below its estimated GF Value™ of $0.73.
GuruFocus considers Else Nutrition Holdings to be Possible Value Trap.
Key valuation signals for BABYD:
Sloan Ratio %: -95.27%
GF Value™: $0.73 vs. price of $0.11 (84.8% below fair value)
No single metric tells the full story. See the BABYD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Else Nutrition Holdings Inc is a food and nutrition company in the international expansion stage focused on developing clean, and Plant-Based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, Plant-Based, non-soy formula is a clean-ingredient alternative to dairy-based formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth. The Company currently has the following product lines-Baby Snacks, Baby Feeding Accessories, Infant formula.
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