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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 Jun. 2026, Teva Pharmaceutical Industries has a Sloan Ratio of -3.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Teva Pharmaceutical Industries (LTS:0LER) 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 Jun. 2026, Teva Pharmaceutical Industries has a Sloan Ratio of -3.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Teva Pharmaceutical Industries Sloan Ratio % Related Terms
Teva Pharmaceutical Industries 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.
Teva Pharmaceutical Industries Sloan Ratio % Chart
LTS:0LER vs ZTS, UTHR, VTRS: Sloan Ratio % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical 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.
Teva Pharmaceutical Industries Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Teva Pharmaceutical Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Teva Pharmaceutical Industries's Sloan Ratio % falls into.
Teva Pharmaceutical Industries Sloan Ratio % Calculation
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.
Teva Pharmaceutical Industries's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 433 (Sep. 2025 ) + 480 (Dec. 2025 ) + 369 (Mar. 2026 ) + -576 (Jun. 2026 ) = $706 Mil.
Teva Pharmaceutical Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 369 (Sep. 2025 ) + 1158 (Dec. 2025 ) + -40 (Mar. 2026 ) + 411 (Jun. 2026 ) = $1,898 Mil.
Teva Pharmaceutical Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 135 (Sep. 2025 ) + 165 (Dec. 2025 ) + 229 (Mar. 2026 ) + -491 (Jun. 2026 ) = $38 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.
Teva Pharmaceutical Industries (LTS:0LER) has a Sloan Ratio % of -3.09% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Teva Pharmaceutical Industries and its competitors.
Is Teva Pharmaceutical Industries' Sloan Ratio % too high?
Teva Pharmaceutical Industries' current Sloan Ratio % is -3.09%. Overall, Teva Pharmaceutical Industries has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teva Pharmaceutical Industries' Sloan Ratio % compare to ZTS and UTHR?
Teva Pharmaceutical Industries' Sloan Ratio % of -3.09% 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 Teva Pharmaceutical Industries and its competitors. Teva Pharmaceutical Industries's current Sloan Ratio % is -3.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teva Pharmaceutical Industries stock overvalued right now?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries (LTS:0LER) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.98, compared to a current price of $36.50 — trading 74% above its estimated fair value. The current Sloan Ratio % is -3.09%. Teva Pharmaceutical Industries' overall GF Score™ is 45/100 with 6 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 Teva Pharmaceutical Industries (LTS:0LER), the current Sloan Ratio % is -3.09% as of Jun. 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 Teva Pharmaceutical Industries (LTS:0LER) Overvalued in 2026?
Based on GuruFocus' analysis, Teva Pharmaceutical Industries stock appears to be overvalued.
The current stock price of $36.50 is trading 74% above its estimated GF Value™ of $20.98.
GuruFocus considers Teva Pharmaceutical Industries to be Significantly Overvalued.
Key valuation signals for LTS:0LER:
Sloan Ratio %: -3.09%
GF Value™: $20.98 vs. price of $36.50 (74% above fair value)
No single metric tells the full story. See the LTS:0LER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teva Pharmaceutical, based in Israel, is the world's leading generic drug manufacturer. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the US. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in two main therapeutic areas: neurology and immunology. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a US-based generic and specialty drug distributor.
45GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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