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.
Asmedia Technology's Sloan Ratio for the quarter that ended in Dec. 2025 was 32.87%.
Warning Sign:
When sloan ratio (31.47)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2025, Asmedia Technology has a Sloan Ratio of 32.87%, indicating earnings are more likely to be made up of accruals.
Asmedia Technology (LUX:ASMTS) 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 Dec. 2025, Asmedia Technology has a Sloan Ratio of 32.87%, indicating earnings are more likely to be made up of accruals.
Asmedia Technology Sloan Ratio % Related Terms
Asmedia Technology Sloan Ratio % Historical Data
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The historical data trend for Asmedia Technology'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.
LUX:ASMTS vs NVDA, AVGO, MU: Sloan Ratio % Comparison
For the Semiconductors subindustry, Asmedia Technology'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.
Asmedia Technology Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Asmedia Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Asmedia Technology'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.
Asmedia Technology's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Asmedia Technology's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 37.077 (Mar. 2025 ) + 37.834 (Jun. 2025 ) + 52.116 (Sep. 2025 ) + 47.83 (Dec. 2025 ) = $174.9 Mil.
Asmedia Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -17.746 (Mar. 2025 ) + 40.124 (Jun. 2025 ) + 26.346 (Sep. 2025 ) + 85.057 (Dec. 2025 ) = $133.8 Mil.
Asmedia Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -0.754 (Mar. 2025 ) + -358.926 (Jun. 2025 ) + -21.817 (Sep. 2025 ) + -5.135 (Dec. 2025 ) = $-386.6 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.
Asmedia Technology (LUX:ASMTS) has a Sloan Ratio % of 32.87% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Asmedia Technology and its competitors.
Is Asmedia Technology's Sloan Ratio % too high?
Asmedia Technology's current Sloan Ratio % is 32.87%. Overall, Asmedia Technology has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Asmedia Technology's Sloan Ratio % compare to NVDA and AVGO?
Asmedia Technology's Sloan Ratio % of 32.87% can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors 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 Asmedia Technology and its competitors. Asmedia Technology's current Sloan Ratio % is 32.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asmedia Technology stock overvalued right now?
Asmedia Technology (LUX:ASMTS) has a current Sloan Ratio % of 32.87%. The stock's GF Value™ is $122.48, compared to a current price of $58.43 — trading 52.3% below its estimated fair value. The current Sloan Ratio % is 32.87%. Asmedia Technology's overall GF Score™ is 86/100 with 5 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 Asmedia Technology (LUX:ASMTS), the current Sloan Ratio % is 32.87% as of Dec. 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.
Is Asmedia Technology (LUX:ASMTS) Overvalued in 2026?
Based on GuruFocus' analysis, Asmedia Technology stock appears to be undervalued.
The current stock price of $58.43 is trading 52.3% below its estimated GF Value™ of $122.48.
Key valuation signals for LUX:ASMTS:
Sloan Ratio %: 32.87%
GF Value™: $122.48 vs. price of $58.43 (52.3% below fair value)
No single metric tells the full story. See the LUX:ASMTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asmedia Technology Inc is a semiconductor memory company. It is engaged in the design, development, production, and manufacture of high-speed analogue circuit products. Some of its products include USB Controller, PCIe Bridge Controller, SATA Controller, High-Speed Signal Switch, and ASIC. Its geographical segments include the Americas, Taiwan, China, Southeast Asia, North-east Asia, and Others, out of which the majority is from the Americas. The majority of its revenue is derived from High-speed interface controller.
86GF 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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