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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.
Rent the Runway's Sloan Ratio for the quarter that ended in Apr. 2026 was 39.02%.
Warning Sign:
When sloan ratio (31.04)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Apr. 2026, Rent the Runway has a Sloan Ratio of 39.02%, indicating earnings are more likely to be made up of accruals.
Rent the Runway (NAS:RENT) 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 Apr. 2026, Rent the Runway has a Sloan Ratio of 39.02%, indicating earnings are more likely to be made up of accruals.
Rent the Runway Sloan Ratio % Related Terms
Rent the Runway Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Rent the Runway'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 Apparel Retail subindustry, Rent the Runway'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.
Rent the Runway Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rent the Runway'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.
Rent the Runway's Sloan Ratio for the fiscal year that ended in Jan. 2026 is calculated as
Rent the Runway's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was -26.4 (Jul. 2025 ) + 76.5 (Oct. 2025 ) + -1.4 (Jan. 2026 ) + -18.9 (Apr. 2026 ) = $29.8 Mil.
Rent the Runway's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was -10.5 (Jul. 2025 ) + -1.4 (Oct. 2025 ) + 7.1 (Jan. 2026 ) + -3.8 (Apr. 2026 ) = $-8.6 Mil.
Rent the Runway's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -16 (Jul. 2025 ) + -12.2 (Oct. 2025 ) + -6.6 (Jan. 2026 ) + -9.8 (Apr. 2026 ) = $-44.6 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.
Rent the Runway (RENT) has a Sloan Ratio % of 39.02% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rent the Runway and its competitors.
Is Rent the Runway's Sloan Ratio % too high?
Rent the Runway's current Sloan Ratio % is 39.02%. Overall, Rent the Runway has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rent the Runway's Sloan Ratio % compare to AKA and TLYS?
Rent the Runway's Sloan Ratio % of 39.02% can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical 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 Rent the Runway and its competitors. Rent the Runway's current Sloan Ratio % is 39.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rent the Runway stock overvalued right now?
Based on GuruFocus' analysis, Rent the Runway (RENT) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.33, compared to a current price of $3.01 — trading 9.6% below its estimated fair value. The current Sloan Ratio % is 39.02%. Rent the Runway's overall GF Score™ is 50/100 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 Rent the Runway (RENT), the current Sloan Ratio % is 39.02% as of Apr. 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 Rent the Runway (RENT) Overvalued in 2026?
Based on GuruFocus' analysis, Rent the Runway stock appears to be undervalued.
The current stock price of $3.01 is trading 9.6% below its estimated GF Value™ of $3.33.
GuruFocus considers Rent the Runway to be Modestly Undervalued.
Key valuation signals for RENT:
Sloan Ratio %: 39.02%
GF Value™: $3.33 vs. price of $3.01 (9.6% below fair value)
No single metric tells the full story. See the RENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories. The company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear.
50GF Score
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