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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.
Weichai Power Co's Sloan Ratio for the quarter that ended in Mar. 2026 was -3.28%.
As of Mar. 2026, Weichai Power Co has a Sloan Ratio of -3.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Weichai Power Co (FRA:WI4) 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, Weichai Power Co has a Sloan Ratio of -3.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Weichai Power Co Sloan Ratio % Related Terms
Weichai Power Co Sloan Ratio % Historical Data
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The historical data trend for Weichai Power 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 Manufacturers subindustry, Weichai Power 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.
Weichai Power Co Sloan Ratio % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Weichai Power Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Weichai Power 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.
Weichai Power Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Weichai Power Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 354.133 (Jun. 2025 ) + 386.811 (Sep. 2025 ) + 248.924 (Dec. 2025 ) + 387.244 (Mar. 2026 ) = €1,377 Mil.
Weichai Power Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1386.579 (Jun. 2025 ) + 978.024 (Sep. 2025 ) + 1657.12 (Dec. 2025 ) + -340.934 (Mar. 2026 ) = €3,681 Mil.
Weichai Power Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -429.61 (Jun. 2025 ) + -616.205 (Sep. 2025 ) + -298.769 (Dec. 2025 ) + 576.383 (Mar. 2026 ) = €-768 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.
Weichai Power Co (FRA:WI4) has a Sloan Ratio % of -3.28% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Weichai Power Co and its competitors.
Is Weichai Power Co's Sloan Ratio % too high?
Weichai Power Co's current Sloan Ratio % is -3.28%. Overall, Weichai Power Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Weichai Power Co's Sloan Ratio % compare to TSLA and GM?
Weichai Power Co's Sloan Ratio % of -3.28% 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 Weichai Power Co and its competitors. Weichai Power Co's current Sloan Ratio % is -3.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Weichai Power Co stock overvalued right now?
Based on GuruFocus' analysis, Weichai Power Co (FRA:WI4) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.25, compared to a current price of €3.62 — trading 60.7% above its estimated fair value. The current Sloan Ratio % is -3.28%. Weichai Power Co's overall GF Score™ is 76/100 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 Weichai Power Co (FRA:WI4), the current Sloan Ratio % is -3.28% 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 Weichai Power Co (FRA:WI4) Overvalued in 2026?
Based on GuruFocus' analysis, Weichai Power Co stock appears to be overvalued.
The current stock price of €3.62 is trading 60.7% above its estimated GF Value™ of €2.25.
GuruFocus considers Weichai Power Co to be Significantly Overvalued.
Key valuation signals for FRA:WI4:
Sloan Ratio %: -3.28%
GF Value™: €2.25 vs. price of €3.62 (60.7% above fair value)
No single metric tells the full story. See the FRA:WI4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Weichai Power Co Ltd is an industrial technology company that offers vehicles and equipment manufacturing, and logistics and supply chain services in China. The operating segments of the company are; Engines segment which includes the manufacturing and sale of engines and related parts; Automobiles and automobile components which includes the manufacturing and sale of automobiles and automobile components other than Engines; Agricultural equipment includes the manufacturing and sale of agricultural equipment (complete machineries), agricultural machineries, agricultural vehicles, and related parts; and the Intelligent logistics segment which includes forklift trucks production, warehousing technology, and supply chain solution services.
76GF Score
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