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.
Iridium Communications's Sloan Ratio for the quarter that ended in Mar. 2026 was -7.87%.
As of Mar. 2026, Iridium Communications has a Sloan Ratio of -7.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Iridium Communications (NAS:IRDM) 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, Iridium Communications has a Sloan Ratio of -7.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Iridium Communications Sloan Ratio % Related Terms
Iridium Communications 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.
IRDM vs LBRDA, TDS, LBTYA: Sloan Ratio % Comparison
For the Telecom Services subindustry, Iridium Communications'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.
Iridium Communications Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Iridium Communications'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.
Iridium Communications's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Iridium Communications's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 21.968 (Jun. 2025 ) + 37.127 (Sep. 2025 ) + 24.865 (Dec. 2025 ) + 21.594 (Mar. 2026 ) = $105.6 Mil.
Iridium Communications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 129.615 (Jun. 2025 ) + 100.782 (Sep. 2025 ) + 108.595 (Dec. 2025 ) + 71.615 (Mar. 2026 ) = $410.6 Mil.
Iridium Communications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -20.71 (Jun. 2025 ) + -21.535 (Sep. 2025 ) + -33.489 (Dec. 2025 ) + -29.955 (Mar. 2026 ) = $-105.7 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.
Iridium Communications (IRDM) has a Sloan Ratio % of -7.87% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Iridium Communications and its competitors.
Is Iridium Communications' Sloan Ratio % too high?
Iridium Communications' current Sloan Ratio % is -7.87%. Overall, Iridium Communications has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Sloan Ratio % compare to LBRDA and TDS?
Iridium Communications' Sloan Ratio % of -7.87% can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Sloan Ratio % depends on the Telecommunication Services 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 Iridium Communications and its competitors. Iridium Communications's current Sloan Ratio % is -7.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Significantly Overvalued. The stock's GF Value™ is $36.51, compared to a current price of $50.06 — trading 37.1% above its estimated fair value. The current Sloan Ratio % is -7.87%. Iridium Communications' overall GF Score™ is 77/100 with 10 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 Iridium Communications (IRDM), the current Sloan Ratio % is -7.87% 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 Iridium Communications (IRDM) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of $50.06 is trading 37.1% above its estimated GF Value™ of $36.51.
GuruFocus considers Iridium Communications to be Significantly Overvalued.
Key valuation signals for IRDM:
Sloan Ratio %: -7.87%
GF Value™: $36.51 vs. price of $50.06 (37.1% above fair value)
No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
77GF Score
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