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.
Nanosonics's Sloan Ratio for the quarter that ended in Dec. 2025 was -1.31%.
As of Dec. 2025, Nanosonics has a Sloan Ratio of -1.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Nanosonics (OTCPK:NNCSF) 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 Dec. 2025, Nanosonics has a Sloan Ratio of -1.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Nanosonics Sloan Ratio % Related Terms
Nanosonics Sloan Ratio % Historical Data
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The historical data trend for Nanosonics'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.
NNCSF vs ISRG, BDX, MDLN: Sloan Ratio % Comparison
For the Medical Instruments & Supplies subindustry, Nanosonics'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.
Nanosonics Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Nanosonics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nanosonics'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.
Nanosonics's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Nanosonics's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 7.107 (Jun. 2025 ) + 6.407 (Dec. 2025 ) = $13.5 Mil.
Nanosonics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 14.849 (Jun. 2025 ) + 4.379 (Dec. 2025 ) = $19.2 Mil.
Nanosonics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -1.794 (Jun. 2025 ) + -1.493 (Dec. 2025 ) = $-3.3 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.
Nanosonics (NNCSF) has a Sloan Ratio % of -1.31% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Nanosonics and its competitors.
Is Nanosonics' Sloan Ratio % too high?
Nanosonics' current Sloan Ratio % is -1.31%. Overall, Nanosonics has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nanosonics' Sloan Ratio % compare to ISRG and BDX?
Nanosonics' Sloan Ratio % of -1.31% can be compared against companies in the Medical Devices & Instruments 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 Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments 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 Nanosonics and its competitors. Nanosonics's current Sloan Ratio % is -1.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanosonics stock overvalued right now?
Based on GuruFocus' analysis, Nanosonics (NNCSF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.52, compared to a current price of $2.55 — trading 27.6% below its estimated fair value. The current Sloan Ratio % is -1.31%. Nanosonics' overall GF Score™ is 90/100 with 1 warning sign 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 Nanosonics (NNCSF), the current Sloan Ratio % is -1.31% as of Dec. 2025. 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 Nanosonics (NNCSF) Overvalued in 2026?
Based on GuruFocus' analysis, Nanosonics stock appears to be undervalued.
The current stock price of $2.55 is trading 27.6% below its estimated GF Value™ of $3.52.
GuruFocus considers Nanosonics to be Modestly Undervalued.
Key valuation signals for NNCSF:
Sloan Ratio %: -1.31%
GF Value™: $3.52 vs. price of $2.55 (27.6% below fair value)
No single metric tells the full story. See the NNCSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanosonics is largely a single-product firm, and its Trophon device provides high-level disinfection of ultrasound probes used in semicritical procedures. The patented technology uses low-temperature sonically activated hydrogen peroxide mist suitable for probes sensitive to damage. Automated HLD is increasingly being used as the standard of care globally as it is superior in preventing cross-infection of patients. Nanosonics' revenue consists of capital sales of Trophon units, ongoing consumables sales, and service revenue. By December 2025, there were 38,000 Trophon units installed globally. Market penetration rates range from over 75% in Australia and New Zealand, over 50% in the US to single-digit penetration in Europe, Middle East, and Africa, and elsewhere in the Asia-Pacific region.
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