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.
McMillan Shakespeare's Sloan Ratio for the quarter that ended in Dec. 2025 was 10.67%.
As of Dec. 2025, McMillan Shakespeare has a Sloan Ratio of 10.67%, indicating there is a warning stage of accrual build up.
McMillan Shakespeare (OTCPK:MCSLF) 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, McMillan Shakespeare has a Sloan Ratio of 10.67%, indicating there is a warning stage of accrual build up.
McMillan Shakespeare Sloan Ratio % Related Terms
McMillan Shakespeare Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for McMillan Shakespeare'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 Staffing & Employment Services subindustry, McMillan Shakespeare'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.
McMillan Shakespeare Sloan Ratio % vs Business Services Industry
For the Business Services industry and Industrials sector, McMillan Shakespeare's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where McMillan Shakespeare'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.
McMillan Shakespeare's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
McMillan Shakespeare's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 32.626 (Jun. 2025 ) + 32.845 (Dec. 2025 ) = $65.5 Mil.
McMillan Shakespeare's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -80.372 (Jun. 2025 ) + 52.354 (Dec. 2025 ) = $-28.0 Mil.
McMillan Shakespeare's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -8.759 (Jun. 2025 ) + -8.848 (Dec. 2025 ) = $-17.6 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.
McMillan Shakespeare (MCSLF) has a Sloan Ratio % of 10.67% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on McMillan Shakespeare and its competitors.
Is McMillan Shakespeare's Sloan Ratio % too high?
McMillan Shakespeare's current Sloan Ratio % is 10.67%. Overall, McMillan Shakespeare has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does McMillan Shakespeare's Sloan Ratio % compare to KFY and RHI?
McMillan Shakespeare's Sloan Ratio % of 10.67% can be compared against companies in the Business Services 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 Business Services company?
A good Sloan Ratio % depends on the Business Services 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 McMillan Shakespeare and its competitors. McMillan Shakespeare's current Sloan Ratio % is 10.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McMillan Shakespeare stock overvalued right now?
McMillan Shakespeare (MCSLF) has a current Sloan Ratio % of 10.67%. The stock's GF Value™ is $12.63, compared to a current price of $9.90 — trading 21.6% below its estimated fair value. The current Sloan Ratio % is 10.67%. McMillan Shakespeare's overall GF Score™ is 81/100 with 13 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 McMillan Shakespeare (MCSLF), the current Sloan Ratio % is 10.67% 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 McMillan Shakespeare (MCSLF) Overvalued in 2026?
Based on GuruFocus' analysis, McMillan Shakespeare stock appears to be undervalued.
The current stock price of $9.90 is trading 21.6% below its estimated GF Value™ of $12.63.
Key valuation signals for MCSLF:
Sloan Ratio %: 10.67%
GF Value™: $12.63 vs. price of $9.90 (21.6% below fair value)
No single metric tells the full story. See the MCSLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McMillan Shakespeare is a provider of salary packaging, novated leasing, disability plan management and support co-ordination, and fleet management services. It actively works to cross-sell its products to clients, for example, selling its salary packaging services to its fleet management customers in Australia and New Zealand. McMillan dominates Australia's salary packaging market together with Smartgroup (also covered by Morningstar), and is also a large provider of novated leasing services by volumes—together with Smartgroup and SG Fleet. The group has three operating segments: group remuneration services, asset management services, and plan and support services. Most of the group's revenue is generated from the group remuneration services segment.
81GF Score
Get the complete analysis for MCSLF
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MCSLF has been successfully added to your 
