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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.
Leonardo SpA's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.00%.
As of Mar. 2026, Leonardo SpA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Leonardo SpA (OTCPK:FINMF) 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, Leonardo SpA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Leonardo SpA Sloan Ratio % Related Terms
Leonardo SpA Sloan Ratio % Historical Data
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The historical data trend for Leonardo SpA'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 Aerospace & Defense subindustry, Leonardo SpA'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.
Leonardo SpA Sloan Ratio % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Leonardo SpA'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.
Leonardo SpA's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Leonardo SpA's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 143.022 (Jun. 2025 ) + 226.526 (Sep. 2025 ) + 655.738 (Dec. 2025 ) + 187.283 (Mar. 2026 ) = $1,213 Mil.
Leonardo SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 351.788 (Jun. 2025 ) + 501.174 (Sep. 2025 ) + 1871.194 (Dec. 2025 ) + -475.145 (Mar. 2026 ) = $2,249 Mil.
Leonardo SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 27.682 (Jun. 2025 ) + -508.216 (Sep. 2025 ) + -282.201 (Dec. 2025 ) + -1754.913 (Mar. 2026 ) = $-2,518 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.
Leonardo SpA (FINMF) has a Sloan Ratio % of 0.00% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Leonardo SpA and its competitors.
Is Leonardo SpA's Sloan Ratio % too high?
Leonardo SpA's current Sloan Ratio % is 0.00%. Overall, Leonardo SpA has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's Sloan Ratio % compare to SPCX and GE?
Leonardo SpA's Sloan Ratio % of 0.00% can be compared against companies in the Aerospace & Defense 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 Aerospace & Defense company?
A good Sloan Ratio % depends on the Aerospace & Defense 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 Leonardo SpA and its competitors. Leonardo SpA'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 Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FINMF) is currently considered Significantly Overvalued. The stock's GF Value™ is $35.05, compared to a current price of $58.20 — trading 66% above its estimated fair value. The current Sloan Ratio % is 0.00%. Leonardo SpA's overall GF Score™ is 79/100 with 1 warning sign 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 Leonardo SpA (FINMF), the current Sloan Ratio % is 0.00% 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 Leonardo SpA (FINMF) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued.
The current stock price of $58.20 is trading 66% above its estimated GF Value™ of $35.05.
GuruFocus considers Leonardo SpA to be Significantly Overvalued.
Key valuation signals for FINMF:
Sloan Ratio %: 0.00%
GF Value™: $35.05 vs. price of $58.20 (66% above fair value)
No single metric tells the full story. See the FINMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
79GF Score
Get the complete analysis for FINMF
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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