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.
Labat Africa's Sloan Ratio for the quarter that ended in Nov. 2025 was 17.29%.
As of Nov. 2025, Labat Africa has a Sloan Ratio of 17.29%, indicating there is a warning stage of accrual build up.
Labat Africa (JSE:LAB) 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 Nov. 2025, Labat Africa has a Sloan Ratio of 17.29%, indicating there is a warning stage of accrual build up.
Labat Africa Sloan Ratio % Related Terms
Labat Africa Sloan Ratio % Historical Data
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The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Sloan Ratio % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa's Sloan Ratio for the fiscal year that ended in May. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Labat Africa's Net Income for the trailing twelve months (TTM) ended in Nov. 2025 was 110.241 (May. 2025 ) + 44.523 (Nov. 2025 ) = R154.8 Mil.
Labat Africa's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2025 was -17.628 (May. 2025 ) + 44.892 (Nov. 2025 ) = R27.3 Mil.
Labat Africa's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2025 was -3.694 (May. 2025 ) + -1.916 (Nov. 2025 ) = R-5.6 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.
Labat Africa (JSE:LAB) has a Sloan Ratio % of 17.29% as of Nov. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Labat Africa and its competitors.
Is Labat Africa's Sloan Ratio % too high?
Labat Africa's current Sloan Ratio % is 17.29%.
How does Labat Africa's Sloan Ratio % compare to ZTS and UTHR?
Labat Africa's Sloan Ratio % of 17.29% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 Labat Africa and its competitors. Labat Africa's current Sloan Ratio % is 17.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.18, compared to a current price of R0.04 — trading 77.8% below its estimated fair value. The current Sloan Ratio % is 17.29%. 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 Labat Africa (JSE:LAB), the current Sloan Ratio % is 17.29% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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