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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.
T. Rowe Price Group's Sloan Ratio for the quarter that ended in Jun. 2026 was 4.69%.
As of Jun. 2026, T. Rowe Price Group has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
T. Rowe Price Group (NAS:TROW) 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 Jun. 2026, T. Rowe Price Group has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
T. Rowe Price Group Sloan Ratio % Related Terms
T. Rowe Price Group Sloan Ratio % Historical Data
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The historical data trend for T. Rowe Price Group'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 Asset Management subindustry, T. Rowe Price Group'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.
T. Rowe Price Group Sloan Ratio % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where T. Rowe Price Group'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.
T. Rowe Price Group's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
T. Rowe Price Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 646.1 (Sep. 2025 ) + 445.3 (Dec. 2025 ) + 498.2 (Mar. 2026 ) + 632 (Jun. 2026 ) = $2,222 Mil.
T. Rowe Price Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 609.3 (Sep. 2025 ) + -18.7 (Dec. 2025 ) + 824.3 (Mar. 2026 ) + 517.3 (Jun. 2026 ) = $1,932 Mil.
T. Rowe Price Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was 37.9 (Sep. 2025 ) + 249.2 (Dec. 2025 ) + 59.6 (Mar. 2026 ) + -777 (Jun. 2026 ) = $-430 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.
T. Rowe Price Group (TROW) has a Sloan Ratio % of 4.69% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on T. Rowe Price Group and its competitors.
Is T. Rowe Price Group's Sloan Ratio % too high?
T. Rowe Price Group's current Sloan Ratio % is 4.69%. Overall, T. Rowe Price Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does T. Rowe Price Group's Sloan Ratio % compare to PFG and NTRS?
T. Rowe Price Group's Sloan Ratio % of 4.69% can be compared against companies in the Asset Management 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 Asset Management company?
A good Sloan Ratio % depends on the Asset Management 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 T. Rowe Price Group and its competitors. T. Rowe Price Group's current Sloan Ratio % is 4.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is T. Rowe Price Group stock overvalued right now?
Based on GuruFocus' analysis, T. Rowe Price Group (TROW) is currently considered Fairly Valued. The stock's GF Value™ is $121.32, compared to a current price of $112.23 — trading 7.5% below its estimated fair value. The current Sloan Ratio % is 4.69%. T. Rowe Price Group's 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 T. Rowe Price Group (TROW), the current Sloan Ratio % is 4.69% as of Jun. 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 T. Rowe Price Group (TROW) Overvalued in 2026?
Based on GuruFocus' analysis, T. Rowe Price Group stock appears to be undervalued.
The current stock price of $112.23 is trading 7.5% below its estimated GF Value™ of $121.32.
GuruFocus considers T. Rowe Price Group to be Fairly Valued.
Key valuation signals for TROW:
Sloan Ratio %: 4.69%
GF Value™: $121.32 vs. price of $112.23 (7.5% below fair value)
No single metric tells the full story. See the TROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
T. Rowe Price provides asset management services for individual and institutional investors. It offers a broad range of no-load US and international stock, hybrid, bond, and money market funds. At the end of May 2026, the firm had $1.892 trillion in managed assets, composed of equity (49%), balanced (37%), fixed-income and money market (11%), and alternative (3%) offerings. Approximately two-thirds of managed assets are held in retirement-based accounts, which provide T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a US-based asset manager, deriving less than 10% of its AUM from overseas.
77GF Score
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