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.
Creative Technology's Sloan Ratio for the quarter that ended in Dec. 2025 was -7.61%.
As of Dec. 2025, Creative Technology has a Sloan Ratio of -7.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Creative Technology (OTCPK:CREAF) 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, Creative Technology has a Sloan Ratio of -7.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Creative Technology Sloan Ratio % Related Terms
Creative Technology Sloan Ratio % Historical Data
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The historical data trend for Creative Technology'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.
CREAF vs SNDK, DELL, STX: Sloan Ratio % Comparison
For the Computer Hardware subindustry, Creative Technology'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.
Creative Technology Sloan Ratio % vs Hardware Industry
For the Hardware industry and Technology sector, Creative Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Creative Technology'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.
Creative Technology'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.
Creative Technology's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -4.375 (Jun. 2025 ) + -1.235 (Dec. 2025 ) = $-5.61 Mil.
Creative Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -4.764 (Jun. 2025 ) + 3.934 (Dec. 2025 ) = $-0.83 Mil.
Creative Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was 0.244 (Jun. 2025 ) + -0.01 (Dec. 2025 ) = $0.23 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.
Creative Technology (CREAF) has a Sloan Ratio % of -7.61% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Creative Technology and its competitors.
Is Creative Technology's Sloan Ratio % too high?
Creative Technology's current Sloan Ratio % is -7.61%. Overall, Creative Technology has a GF Score™ of 32/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Creative Technology's Sloan Ratio % compare to SNDK and DELL?
Creative Technology's Sloan Ratio % of -7.61% can be compared against companies in the Hardware 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 Hardware company?
A good Sloan Ratio % depends on the Hardware 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 Creative Technology and its competitors. Creative Technology's current Sloan Ratio % is -7.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Creative Technology stock overvalued right now?
Based on GuruFocus' analysis, Creative Technology (CREAF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.12, compared to a current price of $0.69 — trading 38.8% below its estimated fair value. The current Sloan Ratio % is -7.61%. Creative Technology's overall GF Score™ is 32/100 with 3 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 Creative Technology (CREAF), the current Sloan Ratio % is -7.61% 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 Creative Technology (CREAF) Overvalued in 2026?
Based on GuruFocus' analysis, Creative Technology stock appears to be undervalued.
The current stock price of $0.69 is trading 38.8% below its estimated GF Value™ of $1.12.
GuruFocus considers Creative Technology to be Possible Value Trap.
Key valuation signals for CREAF:
Sloan Ratio %: -7.61%
GF Value™: $1.12 vs. price of $0.69 (38.8% below fair value)
No single metric tells the full story. See the CREAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Creative Technology Ltd is a digital entertainment company specializing in the design, manufacturing, and distribution of multimedia products. The company's portfolio includes digitized sound and video boards, computers, and personal digital entertainment devices. Their product range features technologies such as Super X-Fi and Sound Blaster, encompassing internal sound cards, external USB DACs and amplifiers, gaming headsets, computer speakers, Bluetooth speakers, headphones, and various accessories. It also offers comprehensive work solutions, including webcams, USB dongles, communication devices, and high-resolution DACs. The company operates across Singapore, the United States of America, Asia Pacific, Ireland, and Europe, with Europe contributing the majority of its revenue.
32GF Score
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