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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.
Ellington Credit Co's Sloan Ratio for the quarter that ended in Sep. 2025 was 0.00%.
As of Sep. 2025, Ellington Credit Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Ellington Credit Co (NYSE:EARN) 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 Sep. 2025, Ellington Credit Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Ellington Credit Co Sloan Ratio % Related Terms
Ellington Credit Co Sloan Ratio % Historical Data
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The historical data trend for Ellington Credit Co'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 Asset Management subindustry, Ellington Credit Co'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.
Ellington Credit Co Sloan Ratio % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ellington Credit Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ellington Credit Co'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.
Ellington Credit Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Ellington Credit Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2025 was 3.44 (Dec. 2024 ) + 14.485 (Sep. 2025 ) = $17.93 Mil.
Ellington Credit Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2025 was 7.647 (Dec. 2024 ) + 364.104 (Sep. 2025 ) = $371.75 Mil.
Ellington Credit Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2025 was -27.625 (Dec. 2024 ) + 0 (Sep. 2025 ) = $-27.63 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.
Ellington Credit Co (EARN) has a Sloan Ratio % of 0.00% as of Sep. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Ellington Credit Co and its competitors.
Is Ellington Credit Co's Sloan Ratio % too high?
Ellington Credit Co's current Sloan Ratio % is 0.00%. Overall, Ellington Credit Co has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Ellington Credit Co's Sloan Ratio % compare to EDF and MPV?
Ellington Credit Co's Sloan Ratio % of 0.00% can be compared against companies in the Asset Management 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 an Asset Management company?
A good Sloan Ratio % depends on the Asset Management 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 Ellington Credit Co and its competitors. Ellington Credit Co's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ellington Credit Co stock overvalued right now?
Ellington Credit Co (EARN) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Ellington Credit Co's overall GF Score™ is 35/100 with 4 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 Ellington Credit Co (EARN), the current Sloan Ratio % is 0.00% as of Sep. 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.
Ellington Credit Co The Fund is focused on acquiring and actively managing a portfolio of corporate CLOs, mainly mezzanine debt and equity tranches, which are typically collateralized by portfolios consisting mainly of below-investment-grade senior secured loans with a large number of discrete underlying borrowers across various industry sectors. Additionally, the Fund may also invest in CLO loan accumulation facilities, which are entities that acquire corporate loans and other similar corporate credit-related assets in anticipation of ultimately collateralizing a CLO transaction. The company's primary investment objectives are to generate attractive current income and risk-adjusted total returns for shareholders.
35GF Score
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