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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.
Destiny Media Technologies (FRA:DME1) 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 May. 2026, Destiny Media Technologies has a Sloan Ratio of -52.39%, indicating there is a warning stage of accrual build up.
Destiny Media Technologies Sloan Ratio % Related Terms
Destiny Media Technologies Sloan Ratio % Historical Data
* 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.
FRA:DME1 vs ALDS, AUUD, ORKT: Sloan Ratio % Comparison
For the Software - Application subindustry, Destiny Media Technologies'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.
Destiny Media Technologies Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Destiny Media Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Destiny Media Technologies's Sloan Ratio % falls into.
Destiny Media Technologies Sloan Ratio % Calculation
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.
Destiny Media Technologies's Net Income for the trailing twelve months (TTM) ended in May. 2026 was -0.328 (Aug. 2025 ) + 0.073 (Nov. 2025 ) + -0.479 (Feb. 2026 ) + -0.182 (May. 2026 ) = €-0.92 Mil.
Destiny Media Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was -0.064 (Aug. 2025 ) + 0.259 (Nov. 2025 ) + -0.181 (Feb. 2026 ) + 0.232 (May. 2026 ) = €0.25 Mil.
Destiny Media Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2026 was -0.018 (Aug. 2025 ) + -0.026 (Nov. 2025 ) + -0.011 (Feb. 2026 ) + -0.009 (May. 2026 ) = €-0.06 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.
Destiny Media Technologies (FRA:DME1) has a Sloan Ratio % of -52.39% as of May. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Destiny Media Technologies and its competitors.
Is Destiny Media Technologies' Sloan Ratio % too high?
Destiny Media Technologies' current Sloan Ratio % is -52.39%. Overall, Destiny Media Technologies has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Destiny Media Technologies' Sloan Ratio % compare to ALDS and AUUD?
Destiny Media Technologies' Sloan Ratio % of -52.39% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Destiny Media Technologies and its competitors. Destiny Media Technologies's current Sloan Ratio % is -52.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Destiny Media Technologies stock overvalued right now?
Based on GuruFocus' analysis, Destiny Media Technologies (FRA:DME1) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.11, compared to a current price of €0.14 — trading 24.5% above its estimated fair value. The current Sloan Ratio % is -52.39%. Destiny Media Technologies' overall GF Score™ is 57/100 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 Destiny Media Technologies (FRA:DME1), the current Sloan Ratio % is -52.39% as of May. 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 Destiny Media Technologies (FRA:DME1) Overvalued in 2026?
Based on GuruFocus' analysis, Destiny Media Technologies stock appears to be overvalued.
The current stock price of €0.14 is trading 24.5% above its estimated GF Value™ of €0.11.
GuruFocus considers Destiny Media Technologies to be Modestly Overvalued.
Key valuation signals for FRA:DME1:
Sloan Ratio %: -52.39%
GF Value™: €0.11 vs. price of €0.14 (24.5% above fair value)
No single metric tells the full story. See the FRA:DME1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Destiny Media Technologies Inc develops and markets software-as-a-service solutions for the music industry, with its business centered on the Play MPE platform, which distributes broadcast-quality digital content from record labels and artists to music curators and broadcasters. Its services include promotional music distribution, international and local release management, targeted recipient list management, and music-curator playback tools, along with the early-stage MTR airplay tracking service. Revenue is generated mainly from the Play MPE distribution service. The company operates internationally, serving customers across the United States, Canada, Europe, Asia, South America, Africa, and Australia.
57GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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