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.
LCI Industries's Sloan Ratio for the quarter that ended in Mar. 2026 was 1.91%.
As of Mar. 2026, LCI Industries has a Sloan Ratio of 1.91%, indicating the company is in the safe zone and there is no funny business with accruals.
LCI Industries (NYSE:LCII) 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, LCI Industries has a Sloan Ratio of 1.91%, indicating the company is in the safe zone and there is no funny business with accruals.
LCI Industries Sloan Ratio % Related Terms
LCI Industries Sloan Ratio % Historical Data
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The historical data trend for LCI Industries'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 Recreational Vehicles subindustry, LCI Industries'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.
LCI Industries Sloan Ratio % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, LCI Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LCI Industries'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.
LCI Industries's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
LCI Industries's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 57.635 (Jun. 2025 ) + 62.493 (Sep. 2025 ) + 18.684 (Dec. 2025 ) + 62.947 (Mar. 2026 ) = $202 Mil.
LCI Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 112.219 (Jun. 2025 ) + 97.167 (Sep. 2025 ) + 78.872 (Dec. 2025 ) + -33.459 (Mar. 2026 ) = $255 Mil.
LCI Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -81.31 (Jun. 2025 ) + 1.714 (Sep. 2025 ) + -25.431 (Dec. 2025 ) + -9.599 (Mar. 2026 ) = $-115 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.
LCI Industries (LCII) has a Sloan Ratio % of 1.91% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on LCI Industries and its competitors.
Is LCI Industries' Sloan Ratio % too high?
LCI Industries' current Sloan Ratio % is 1.91%. Overall, LCI Industries has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LCI Industries' Sloan Ratio % compare to HOG and PATK?
LCI Industries' Sloan Ratio % of 1.91% can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Sloan Ratio % depends on the Vehicles & Parts 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 LCI Industries and its competitors. LCI Industries's current Sloan Ratio % is 1.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LCI Industries stock overvalued right now?
Based on GuruFocus' analysis, LCI Industries (LCII) is currently considered Modestly Undervalued. The stock's GF Value™ is $122.51, compared to a current price of $100.56 — trading 17.9% below its estimated fair value. The current Sloan Ratio % is 1.91%. LCI Industries' overall GF Score™ is 71/100 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 LCI Industries (LCII), the current Sloan Ratio % is 1.91% 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 LCI Industries (LCII) Overvalued in 2026?
Based on GuruFocus' analysis, LCI Industries stock appears to be undervalued.
The current stock price of $100.56 is trading 17.9% below its estimated GF Value™ of $122.51.
GuruFocus considers LCI Industries to be Modestly Undervalued.
Key valuation signals for LCII:
Sloan Ratio %: 1.91%
GF Value™: $122.51 vs. price of $100.56 (17.9% below fair value)
No single metric tells the full story. See the LCII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries, including buses and trailers used to haul boats, livestock, equipment, and other cargo. It has two reportable segments: the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold to manufacturers of RVs such as Thor Industries, Forest River, Winnebago, and other RV OEMs, and to manufacturers in adjacent industries.
71GF Score
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