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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.
Affirm Holdings's Sloan Ratio for the quarter that ended in Mar. 2026 was 9.11%.
As of Mar. 2026, Affirm Holdings has a Sloan Ratio of 9.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Affirm Holdings (MEX:AFRM) 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, Affirm Holdings has a Sloan Ratio of 9.11%, indicating the company is in the safe zone and there is no funny business with accruals.
Affirm Holdings Sloan Ratio % Related Terms
Affirm Holdings Sloan Ratio % Historical Data
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The historical data trend for Affirm Holdings'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:AFRM vs SYF, SOFI, ALLY: Sloan Ratio % Comparison
For the Credit Services subindustry, Affirm Holdings'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.
Affirm Holdings Sloan Ratio % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Affirm Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Affirm Holdings'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.
Affirm Holdings's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
Affirm Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 1303.809 (Jun. 2025 ) + 1480.267 (Sep. 2025 ) + 2333.287 (Dec. 2025 ) + 1855.565 (Mar. 2026 ) = MXN6,973 Mil.
Affirm Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1405.355 (Jun. 2025 ) + 6871.224 (Sep. 2025 ) + 3128.274 (Dec. 2025 ) + 6969.657 (Mar. 2026 ) = MXN18,375 Mil.
Affirm Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -8558.135 (Jun. 2025 ) + -2561.052 (Sep. 2025 ) + -24577.726 (Dec. 2025 ) + 2694.807 (Mar. 2026 ) = MXN-33,002 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.
Affirm Holdings (MEX:AFRM) has a Sloan Ratio % of 9.11% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Affirm Holdings and its competitors.
Is Affirm Holdings' Sloan Ratio % too high?
Affirm Holdings' current Sloan Ratio % is 9.11%. Overall, Affirm Holdings has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Affirm Holdings' Sloan Ratio % compare to SYF and SOFI?
Affirm Holdings' Sloan Ratio % of 9.11% can be compared against companies in the Credit 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 Credit Services company?
A good Sloan Ratio % depends on the Credit 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 Affirm Holdings and its competitors. Affirm Holdings's current Sloan Ratio % is 9.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Affirm Holdings stock overvalued right now?
Based on GuruFocus' analysis, Affirm Holdings (MEX:AFRM) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,257.34, compared to a current price of MXN1,240.00 — trading 1.4% below its estimated fair value. The current Sloan Ratio % is 9.11%. Affirm Holdings' overall GF Score™ is 77/100 with 7 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 Affirm Holdings (MEX:AFRM), the current Sloan Ratio % is 9.11% 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 Affirm Holdings (MEX:AFRM) Overvalued in 2026?
Based on GuruFocus' analysis, Affirm Holdings stock appears to be undervalued.
The current stock price of MXN1,240.00 is trading 1.4% below its estimated GF Value™ of MXN1,257.34.
GuruFocus considers Affirm Holdings to be Fairly Valued.
Key valuation signals for MEX:AFRM:
Sloan Ratio %: 9.11%
GF Value™: MXN1,257.34 vs. price of MXN1,240.00 (1.4% below fair value)
No single metric tells the full story. See the MEX:AFRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 2012, Affirm is a market leader in the buy now, pay later space with around $36 billion in transaction volume in fiscal 2025. Affirm offers both zero-interest financing, which is merchant subsidized, and interest-bearing loans, which function as personal loans that are approved on a per-transaction basis. Over 70% of Affirm's transaction volume comes from its interest-bearing loans, which also constitute the majority of its revenue. Affirm primarily operates in the United States, which accounted for more than 95% of its revenue in 2025, but it has also expanded to Canada and the United Kingdom.
77GF Score
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