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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.
CNH Industrial NV's Sloan Ratio for the quarter that ended in Mar. 2026 was -2.33%.
As of Mar. 2026, CNH Industrial NV has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
CNH Industrial NV (NYSE:CNH) 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, CNH Industrial NV has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
CNH Industrial NV Sloan Ratio % Related Terms
CNH Industrial NV Sloan Ratio % Historical Data
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The historical data trend for CNH Industrial NV'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 Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.
CNH Industrial NV Sloan Ratio % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CNH Industrial NV'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.
CNH Industrial NV's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
CNH Industrial NV's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 213 (Jun. 2025 ) + 80 (Sep. 2025 ) + 86 (Dec. 2025 ) + 7 (Mar. 2026 ) = $386 Mil.
CNH Industrial NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 772 (Jun. 2025 ) + 659 (Sep. 2025 ) + 945 (Dec. 2025 ) + 35 (Mar. 2026 ) = $2,411 Mil.
CNH Industrial NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -342 (Jun. 2025 ) + -466 (Sep. 2025 ) + -292 (Dec. 2025 ) + 54 (Mar. 2026 ) = $-1,046 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.
CNH Industrial NV (CNH) has a Sloan Ratio % of -2.33% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on CNH Industrial NV and its competitors.
Is CNH Industrial NV's Sloan Ratio % too high?
CNH Industrial NV's current Sloan Ratio % is -2.33%. Overall, CNH Industrial NV has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CNH Industrial NV's Sloan Ratio % compare to OSK and AGCO?
CNH Industrial NV's Sloan Ratio % of -2.33% can be compared against companies in the Farm & Heavy Construction Machinery 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 Farm & Heavy Construction Machinery company?
A good Sloan Ratio % depends on the Farm & Heavy Construction Machinery 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 CNH Industrial NV and its competitors. CNH Industrial NV's current Sloan Ratio % is -2.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CNH Industrial NV stock overvalued right now?
Based on GuruFocus' analysis, CNH Industrial NV (CNH) is currently considered Fairly Valued. The stock's GF Value™ is $9.91, compared to a current price of $10.33 — trading 4.2% above its estimated fair value. The current Sloan Ratio % is -2.33%. CNH Industrial NV's overall GF Score™ is 65/100 with 7 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 CNH Industrial NV (CNH), the current Sloan Ratio % is -2.33% 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 CNH Industrial NV (CNH) Overvalued in 2026?
Based on GuruFocus' analysis, CNH Industrial NV stock appears to be overvalued.
The current stock price of $10.33 is trading 4.2% above its estimated GF Value™ of $9.91.
GuruFocus considers CNH Industrial NV to be Fairly Valued.
Key valuation signals for CNH:
Sloan Ratio %: -2.33%
GF Value™: $9.91 vs. price of $10.33 (4.2% above fair value)
No single metric tells the full story. See the CNH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CNH Industrial is the world's second largest manufacturer of agricultural machinery (82% of industrial net sales) as well as a major player in construction equipment (18% of industrial net sales). Its Case and New Holland brands have served farmers for generations. Geographically, agricultural sales are 40% in North America, 32% in Europe, the Middle East, and Africa, 18% in South America, and 10% in Asia-Pacific. CNH's products are available through a robust independent dealer network, which includes over 2,600 dealer and distribution locations and reach into 164 countries. The construction business leverages over 400 dealers. The company's captive finance arm provides retail financing to its customers and wholesale financing to dealers to maintain inventory, thereby supporting sales.
65GF Score
Get the complete analysis for CNH
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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