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.
General Dynamics's Sloan Ratio for the quarter that ended in Mar. 2026 was -2.99%.
As of Mar. 2026, General Dynamics has a Sloan Ratio of -2.99%, indicating the company is in the safe zone and there is no funny business with accruals.
General Dynamics (MEX:GD) 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, General Dynamics has a Sloan Ratio of -2.99%, indicating the company is in the safe zone and there is no funny business with accruals.
General Dynamics Sloan Ratio % Related Terms
General Dynamics Sloan Ratio % Historical Data
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The historical data trend for General Dynamics'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 Aerospace & Defense subindustry, General Dynamics'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.
General Dynamics Sloan Ratio % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where General Dynamics'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.
General Dynamics's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
General Dynamics's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 19092.809 (Jun. 2025 ) + 19426.508 (Sep. 2025 ) + 20580.515 (Dec. 2025 ) + 20286.788 (Mar. 2026 ) = MXN79,387 Mil.
General Dynamics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 30089.062 (Jun. 2025 ) + 38687.918 (Sep. 2025 ) + 28106.898 (Dec. 2025 ) + 38860.469 (Mar. 2026 ) = MXN135,744 Mil.
General Dynamics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1619.311 (Jun. 2025 ) + -3778.905 (Sep. 2025 ) + -15520.913 (Dec. 2025 ) + -3642.605 (Mar. 2026 ) = MXN-24,562 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.
General Dynamics (MEX:GD) has a Sloan Ratio % of -2.99% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on General Dynamics and its competitors.
Is General Dynamics' Sloan Ratio % too high?
General Dynamics' current Sloan Ratio % is -2.99%. Overall, General Dynamics has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' Sloan Ratio % compare to HWM and TDG?
General Dynamics' Sloan Ratio % of -2.99% can be compared against companies in the Aerospace & Defense 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 an Aerospace & Defense company?
A good Sloan Ratio % depends on the Aerospace & Defense 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 General Dynamics and its competitors. General Dynamics's current Sloan Ratio % is -2.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Dynamics stock overvalued right now?
Based on GuruFocus' analysis, General Dynamics (MEX:GD) is currently considered Fairly Valued. The stock's GF Value™ is MXN6,029.62, compared to a current price of MXN6,518.71 — trading 8.1% above its estimated fair value. The current Sloan Ratio % is -2.99%. General Dynamics' overall GF Score™ is 87/100 with 8 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 General Dynamics (MEX:GD), the current Sloan Ratio % is -2.99% 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 General Dynamics (MEX:GD) Overvalued in 2026?
Based on GuruFocus' analysis, General Dynamics stock appears to be overvalued.
The current stock price of MXN6,518.71 is trading 8.1% above its estimated GF Value™ of MXN6,029.62.
GuruFocus considers General Dynamics to be Fairly Valued.
Key valuation signals for MEX:GD:
Sloan Ratio %: -2.99%
GF Value™: MXN6,029.62 vs. price of MXN6,518.71 (8.1% above fair value)
No single metric tells the full story. See the MEX:GD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments are aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment manufactures Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and Navy support ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business focusing on electronics that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
87GF Score
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