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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.
Advance Auto Parts's Sloan Ratio for the quarter that ended in Mar. 2026 was 2.36%.
As of Mar. 2026, Advance Auto Parts has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Advance Auto Parts (MEX:AAP) 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, Advance Auto Parts has a Sloan Ratio of 2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Advance Auto Parts Sloan Ratio % Related Terms
Advance Auto Parts Sloan Ratio % Historical Data
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The historical data trend for Advance Auto Parts'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.
MEX:AAP vs QS, VGNT, DAN: Sloan Ratio % Comparison
For the Auto Parts subindustry, Advance Auto Parts'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.
Advance Auto Parts Sloan Ratio % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts'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.
Advance Auto Parts's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Advance Auto Parts's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 282.438 (Jun. 2025 ) + -18.344 (Sep. 2025 ) + 108.034 (Dec. 2025 ) + 432.785 (Mar. 2026 ) = MXN805 Mil.
Advance Auto Parts's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 941.46 (Jun. 2025 ) + -220.13 (Sep. 2025 ) + 1296.41 (Dec. 2025 ) + -342.621 (Mar. 2026 ) = MXN1,675 Mil.
Advance Auto Parts's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -903.802 (Jun. 2025 ) + -1137.34 (Sep. 2025 ) + -1836.581 (Dec. 2025 ) + -2019.662 (Mar. 2026 ) = MXN-5,897 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.
Advance Auto Parts (MEX:AAP) has a Sloan Ratio % of 2.36% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Advance Auto Parts and its competitors.
Is Advance Auto Parts' Sloan Ratio % too high?
Advance Auto Parts' current Sloan Ratio % is 2.36%. Overall, Advance Auto Parts has a GF Score™ of 55/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Sloan Ratio % compare to QS and VGNT?
Advance Auto Parts' Sloan Ratio % of 2.36% 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 Advance Auto Parts and its competitors. Advance Auto Parts's current Sloan Ratio % is 2.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (MEX:AAP) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN872.75, compared to a current price of MXN968.18 — trading 10.9% above its estimated fair value. The current Sloan Ratio % is 2.36%. Advance Auto Parts' overall GF Score™ is 55/100 with 9 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 Advance Auto Parts (MEX:AAP), the current Sloan Ratio % is 2.36% 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 Advance Auto Parts (MEX:AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of MXN968.18 is trading 10.9% above its estimated GF Value™ of MXN872.75.
GuruFocus considers Advance Auto Parts to be Modestly Overvalued.
Key valuation signals for MEX:AAP:
Sloan Ratio %: 2.36%
GF Value™: MXN872.75 vs. price of MXN968.18 (10.9% above fair value)
No single metric tells the full story. See the MEX:AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
55GF Score
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