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.
First Tractor Co's Sloan Ratio for the quarter that ended in Dec. 2025 was 0.00%.
As of Dec. 2025, First Tractor Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
First Tractor Co (OTCPK:FIRRF) 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, First Tractor Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
First Tractor Co Sloan Ratio % Related Terms
First Tractor Co Sloan Ratio % Historical Data
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The historical data trend for First Tractor 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 Farm & Heavy Construction Machinery subindustry, First Tractor 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.
First Tractor Co Sloan Ratio % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, First Tractor Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where First Tractor 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.
First Tractor Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
First Tractor Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -24.569 (Dec. 2024 ) + 0 (Jun. 2025 ) + 31.607 (Sep. 2025 ) + -25.874 (Dec. 2025 ) = $-18.8 Mil.
First Tractor Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -72.612 (Dec. 2024 ) + 0 (Jun. 2025 ) + 97.409 (Sep. 2025 ) + -24.865 (Dec. 2025 ) = $-0.1 Mil.
First Tractor Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was 69.617 (Dec. 2024 ) + 0 (Jun. 2025 ) + -100.624 (Sep. 2025 ) + 58.057 (Dec. 2025 ) = $27.1 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.
First Tractor Co (FIRRF) has a Sloan Ratio % of 0.00% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on First Tractor Co and its competitors.
Is First Tractor Co's Sloan Ratio % too high?
First Tractor Co's current Sloan Ratio % is 0.00%. Overall, First Tractor Co has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does First Tractor Co's Sloan Ratio % compare to CAT and DE?
First Tractor Co's Sloan Ratio % of 0.00% 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 First Tractor Co and its competitors. First Tractor 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 First Tractor Co stock overvalued right now?
First Tractor Co (FIRRF) has a current Sloan Ratio % of 0.00%. The stock's GF Value™ is $0.93, compared to a current price of $0.95 — trading 1.8% above its estimated fair value. The current Sloan Ratio % is 0.00%. First Tractor Co's overall GF Score™ is 82/100 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 First Tractor Co (FIRRF), the current Sloan Ratio % is 0.00% 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 First Tractor Co (FIRRF) Overvalued in 2026?
Based on GuruFocus' analysis, First Tractor Co stock appears to be overvalued.
The current stock price of $0.95 is trading 1.8% above its estimated GF Value™ of $0.93.
Key valuation signals for FIRRF:
Sloan Ratio %: 0.00%
GF Value™: $0.93 vs. price of $0.95 (1.8% above fair value)
No single metric tells the full story. See the FIRRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Tractor Co Ltd is an agricultural machinery and equipment manufacturing service provider in China. The company focuses on the R&D and manufacturing of medium and largesized tractors and their core components, accelerating the product upgrades towards high-end, intelligent and green technologies. The company has two reportable segments: agricultural machinery segment and power machinery segment. The agricultural machinery segment is responsible for the production and sales of agricultural tractors and harvesters. The power machinery segment is mainly responsible for the production and sales of diesel engines. The majority of the company's revenue is derived from the Agricultural machinery segment.
82GF Score
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