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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.
Lit Life Holdings's Sloan Ratio for the quarter that ended in Mar. 2026 was -25.58%.
Warning Sign:
When sloan ratio (-25.64)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Lit Life Holdings has a Sloan Ratio of -25.58%, indicating earnings are more likely to be made up of accruals.
Lit Life Holdings (HKSE:08079) 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, Lit Life Holdings has a Sloan Ratio of -25.58%, indicating earnings are more likely to be made up of accruals.
Lit Life Holdings Sloan Ratio % Related Terms
Lit Life Holdings Sloan Ratio % Historical Data
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The historical data trend for Lit Life Holdings'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 Grocery Stores subindustry, Lit Life Holdings'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.
Lit Life Holdings Sloan Ratio % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Lit Life Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lit Life Holdings'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.
Lit Life Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Lit Life Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -0.462 (Sep. 2025 ) + -3.002 (Mar. 2026 ) = HK$-3.46 Mil.
Lit Life Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 10.506 (Sep. 2025 ) + -5.059 (Mar. 2026 ) = HK$5.45 Mil.
Lit Life Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.3 (Sep. 2025 ) + 1.24 (Mar. 2026 ) = HK$0.94 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.
Lit Life Holdings (HKSE:08079) has a Sloan Ratio % of -25.58% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lit Life Holdings and its competitors.
Is Lit Life Holdings' Sloan Ratio % too high?
Lit Life Holdings' current Sloan Ratio % is -25.58%. Overall, Lit Life Holdings has a GF Score™ of 26/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lit Life Holdings' Sloan Ratio % compare to KR?
Lit Life Holdings' Sloan Ratio % of -25.58% can be compared against companies in the Retail - Defensive 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 Retail - Defensive company?
A good Sloan Ratio % depends on the Retail - Defensive 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 Lit Life Holdings and its competitors. Lit Life Holdings's current Sloan Ratio % is -25.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lit Life Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lit Life Holdings (HKSE:08079) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.53 — trading 29.3% above its estimated fair value. The current Sloan Ratio % is -25.58%. Lit Life Holdings' overall GF Score™ is 26/100 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 Lit Life Holdings (HKSE:08079), the current Sloan Ratio % is -25.58% 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 Lit Life Holdings (HKSE:08079) Overvalued in 2026?
Based on GuruFocus' analysis, Lit Life Holdings stock appears to be overvalued.
The current stock price of HK$0.53 is trading 29.3% above its estimated GF Value™ of HK$0.41.
GuruFocus considers Lit Life Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:08079:
Sloan Ratio %: -25.58%
GF Value™: HK$0.41 vs. price of HK$0.53 (29.3% above fair value)
No single metric tells the full story. See the HKSE:08079 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wisdomcome Group Holdings Ltd is an investment holding company mainly engaged in the wholesale and retail of groceries. Along with subsidiaries, the Company operates its business through two segments. The Retail and Wholesale segment is principally involved in the groceries retail and wholesale, frozen foods, and coupons, Retail groceries mainly include frozen soup, frozen seafood, personal care products, and stationery. The Money Lending segment is mainly engaged in the money lending business. In addition, the Company is also engaged in financial instruments and quoted shares investment business. All of the group's operations are located in Hong Kong.
26GF 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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