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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.
Launch Tech Co's Sloan Ratio for the quarter that ended in Dec. 2025 was 0.00%.
As of Dec. 2025, Launch Tech Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Launch Tech Co (FRA:LAN) 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, Launch Tech Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Launch Tech Co Sloan Ratio % Related Terms
Launch Tech Co Sloan Ratio % Historical Data
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The historical data trend for Launch Tech 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 Auto Parts subindustry, Launch Tech 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.
Launch Tech Co Sloan Ratio % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Launch Tech Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Launch Tech 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.
Launch Tech Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Launch Tech Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 23.513 (Jun. 2025 ) + 18.13 (Dec. 2025 ) = €41.6 Mil.
Launch Tech Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 22.84 (Jun. 2025 ) + 0 (Dec. 2025 ) = €22.8 Mil.
Launch Tech Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -7.884 (Jun. 2025 ) + -2.771 (Dec. 2025 ) = €-10.7 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.
Launch Tech Co (FRA:LAN) 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 Launch Tech Co and its competitors.
Is Launch Tech Co's Sloan Ratio % too high?
Launch Tech Co's current Sloan Ratio % is 0.00%. Overall, Launch Tech Co has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Launch Tech Co's Sloan Ratio % compare to ORLY and AZO?
Launch Tech Co's Sloan Ratio % of 0.00% can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Sloan Ratio % depends on the Vehicles & Parts 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 Launch Tech Co and its competitors. Launch Tech 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 Launch Tech Co stock overvalued right now?
Launch Tech Co (FRA:LAN) has a current Sloan Ratio % of 0.00%. The stock's GF Value™ is €0.70, compared to a current price of €0.73 — trading 4.3% above its estimated fair value. The current Sloan Ratio % is 0.00%. Launch Tech Co's overall GF Score™ is 77/100 with 2 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 Launch Tech Co (FRA:LAN), 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 Launch Tech Co (FRA:LAN) Overvalued in 2026?
Based on GuruFocus' analysis, Launch Tech Co stock appears to be overvalued.
The current stock price of €0.73 is trading 4.3% above its estimated GF Value™ of €0.70.
Key valuation signals for FRA:LAN:
Sloan Ratio %: 0.00%
GF Value™: €0.70 vs. price of €0.73 (4.3% above fair value)
No single metric tells the full story. See the FRA:LAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Launch Tech Co Ltd principally engages in the provision of products and services serving the automotive aftermarket and the automobile industry mainly in the People's Republic of China and certain overseas countries. The Company has three reporting segments: i) Automotive diagnosis segment, ii) Europe Overseas Sales segment, and iii) U.S. overseas sales segment. The automotive diagnosis segment covers research and development, production and sales of automotive diagnostic and inspection products. The Europe Overseas Sales segment covers development and maintenance of European distributors and customers. The U.S. Overseas Sales segment covers development and maintenance of distributors and customers in the Americas. The majority of revenue is derived from the Automotive diagnosis segment.
77GF 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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