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.
The Kroger Co's Sloan Ratio for the quarter that ended in Apr. 2026 was -3.49%.
As of Apr. 2026, The Kroger Co has a Sloan Ratio of -3.49%, indicating the company is in the safe zone and there is no funny business with accruals.
The Kroger Co (LTS:0JS2) 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 Apr. 2026, The Kroger Co has a Sloan Ratio of -3.49%, indicating the company is in the safe zone and there is no funny business with accruals.
The Kroger Co Sloan Ratio % Related Terms
The Kroger Co Sloan Ratio % Historical Data
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The historical data trend for The Kroger Co'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.
LTS:0JS2 vs SFM, ACI, WMK: Sloan Ratio % Comparison
For the Grocery Stores subindustry, The Kroger Co'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.
The Kroger Co Sloan Ratio % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Kroger Co'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.
The Kroger Co's Sloan Ratio for the fiscal year that ended in Jan. 2026 is calculated as
The Kroger Co's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 609 (Jul. 2025 ) + -1320 (Oct. 2025 ) + 861 (Jan. 2026 ) + 903 (Apr. 2026 ) = $1,053 Mil.
The Kroger Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 1539 (Jul. 2025 ) + 970 (Oct. 2025 ) + 2653 (Jan. 2026 ) + 1774 (Apr. 2026 ) = $6,936 Mil.
The Kroger Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -1068 (Jul. 2025 ) + -908 (Oct. 2025 ) + -899 (Jan. 2026 ) + -1255 (Apr. 2026 ) = $-4,130 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.
The Kroger Co (LTS:0JS2) has a Sloan Ratio % of -3.49% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Kroger Co and its competitors.
Is The Kroger Co's Sloan Ratio % too high?
The Kroger Co's current Sloan Ratio % is -3.49%. Overall, The Kroger Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's Sloan Ratio % compare to SFM and ACI?
The Kroger Co's Sloan Ratio % of -3.49% 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 The Kroger Co and its competitors. The Kroger Co's current Sloan Ratio % is -3.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kroger Co stock overvalued right now?
Based on GuruFocus' analysis, The Kroger Co (LTS:0JS2) is currently considered Modestly Undervalued. The stock's GF Value™ is $67.00, compared to a current price of $60.53 — trading 9.7% below its estimated fair value. The current Sloan Ratio % is -3.49%. The Kroger Co's overall GF Score™ is 63/100 with 1 warning sign 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 The Kroger Co (LTS:0JS2), the current Sloan Ratio % is -3.49% as of Apr. 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 The Kroger Co (LTS:0JS2) Overvalued in 2026?
Based on GuruFocus' analysis, The Kroger Co stock appears to be undervalued.
The current stock price of $60.53 is trading 9.7% below its estimated GF Value™ of $67.00.
GuruFocus considers The Kroger Co to be Modestly Undervalued.
Key valuation signals for LTS:0JS2:
Sloan Ratio %: -3.49%
GF Value™: $67.00 vs. price of $60.53 (9.7% below fair value)
No single metric tells the full story. See the LTS:0JS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners. Kroger's business is primarily grocery-led (roughly 78% of sales), spanning fresh food and private-label offerings, complemented by fuel centers (9%) and pharmacies (12%). The firm also generates income from advertising, data analytics, and manufacturing.
63GF Score
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