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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.
As of Apr. 2026, Western Asset Highome Fund II has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Western Asset Highome Fund II (NYSE:HIX) 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 Apr. 2026, Western Asset Highome Fund II has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Western Asset Highome Fund II Sloan Ratio % Related Terms
Western Asset Highome Fund II 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.
For the Asset Management subindustry, Western Asset Highome Fund II'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.
Western Asset Highome Fund II Sloan Ratio % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Western Asset Highome Fund II's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Western Asset Highome Fund II's Sloan Ratio % falls into.
Western Asset Highome Fund II 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Western Asset Highome Fund II's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 36.356 (Oct. 2025 ) + 9.426 (Apr. 2026 ) = $45.78 Mil.
Western Asset Highome Fund II's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 23.622 (Oct. 2025 ) + 51.1 (Apr. 2026 ) = $74.72 Mil.
Western Asset Highome Fund II's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was 0 (Oct. 2025 ) + 0 (Apr. 2026 ) = $0.00 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.
Western Asset Highome Fund II (HIX) has a Sloan Ratio % of 0.00% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Western Asset Highome Fund II and its competitors.
Is Western Asset Highome Fund II's Sloan Ratio % too high?
Western Asset Highome Fund II's current Sloan Ratio % is 0.00%. Overall, Western Asset Highome Fund II has a GF Score™ of 50/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Western Asset Highome Fund II's Sloan Ratio % compare to MIY and JGH?
Western Asset Highome Fund II's Sloan Ratio % of 0.00% can be compared against companies in the Asset Management 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 Asset Management company?
A good Sloan Ratio % depends on the Asset Management 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 Western Asset Highome Fund II and its competitors. Western Asset Highome Fund II'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 Western Asset Highome Fund II stock overvalued right now?
Based on GuruFocus' analysis, Western Asset Highome Fund II (HIX) is currently considered Significantly Undervalued. The stock's GF Value™ is $6.05, compared to a current price of $3.98 — trading 34.3% below its estimated fair value. The current Sloan Ratio % is 0.00%. Western Asset Highome Fund II's overall GF Score™ is 50/100 with 3 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 Western Asset Highome Fund II (HIX), the current Sloan Ratio % is 0.00% as of Apr. 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 Western Asset Highome Fund II (HIX) Overvalued in 2026?
Based on GuruFocus' analysis, Western Asset Highome Fund II stock appears to be undervalued.
The current stock price of $3.98 is trading 34.3% below its estimated GF Value™ of $6.05.
GuruFocus considers Western Asset Highome Fund II to be Significantly Undervalued.
Key valuation signals for HIX:
Sloan Ratio %: 0.00%
GF Value™: $6.05 vs. price of $3.98 (34.3% below fair value)
No single metric tells the full story. See the HIX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Asset Highome Fund II Business Description
Western Asset High Income Fund II Inc is a diversified closed-end management investment company. Its investment objective is to maximize current income by investing at least 80% of its net assets and borrowings for investment purposes in high-yield debt securities.
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