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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 Dec. 2025, Harvey Norman Holdings has a Sloan Ratio of 1.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Harvey Norman Holdings (OTCPK:HNORF) 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, Harvey Norman Holdings has a Sloan Ratio of 1.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Harvey Norman Holdings Sloan Ratio % Related Terms
Harvey Norman Holdings 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 Specialty Retail subindustry, Harvey Norman 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.
Harvey Norman Holdings Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Harvey Norman Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Harvey Norman 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.
Harvey Norman Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Harvey Norman Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 155.353 (Jun. 2025 ) + 213.894 (Dec. 2025 ) = $369 Mil.
Harvey Norman Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 160.288 (Jun. 2025 ) + 261.052 (Dec. 2025 ) = $421 Mil.
Harvey Norman Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -63.415 (Jun. 2025 ) + -84.332 (Dec. 2025 ) = $-148 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.
Harvey Norman Holdings (HNORF) has a Sloan Ratio % of 1.64% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Harvey Norman Holdings and its competitors.
Is Harvey Norman Holdings' Sloan Ratio % too high?
Harvey Norman Holdings' current Sloan Ratio % is 1.64%. Overall, Harvey Norman Holdings has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Harvey Norman Holdings' Sloan Ratio % compare to CASY and WSM?
Harvey Norman Holdings' Sloan Ratio % of 1.64% can be compared against companies in the Retail - Cyclical 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 - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical 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 Harvey Norman Holdings and its competitors. Harvey Norman Holdings's current Sloan Ratio % is 1.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harvey Norman Holdings stock overvalued right now?
Harvey Norman Holdings (HNORF) has a current Sloan Ratio % of 1.64%. The stock's GF Value™ is $4.27, compared to a current price of $3.72 — trading 12.9% below its estimated fair value. The current Sloan Ratio % is 1.64%. Harvey Norman Holdings' overall GF Score™ is 77/100 with 5 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 Harvey Norman Holdings (HNORF), the current Sloan Ratio % is 1.64% 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 Harvey Norman Holdings (HNORF) Overvalued in 2026?
Based on GuruFocus' analysis, Harvey Norman Holdings stock appears to be undervalued.
The current stock price of $3.72 is trading 12.9% below its estimated GF Value™ of $4.27.
Key valuation signals for HNORF:
Sloan Ratio %: 1.64%
GF Value™: $4.27 vs. price of $3.72 (12.9% below fair value)
No single metric tells the full story. See the HNORF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harvey Norman Holdings Limited is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with the international divisions gradually growing in significance.
77GF Score
Get the complete analysis for HNORF
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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