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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.
When sloan ratio (29.88)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2025, Encompass Design India has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Encompass Design India (NSE:ENCOMPAS) 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 Sep. 2025, Encompass Design India has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Encompass Design India Sloan Ratio % Related Terms
Encompass Design India Sloan Ratio % Historical Data
* 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.
Encompass Design India Sloan Ratio % Chart
Encompass Design India Annual Data
Trend
Mar23
Mar24
Mar25
Sloan Ratio %
-15.45
29.93
29.88
Encompass Design India Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
Sloan Ratio %
0.00
0.00
0.00
0.00
NSE:ENCOMPAS vs HD, LOW, FND: Sloan Ratio % Comparison
For the Home Improvement Retail subindustry, Encompass Design India'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.
Encompass Design India Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Encompass Design India's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Encompass Design India'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.
Encompass Design India's Sloan Ratio for the fiscal year that ended in Mar. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Encompass Design India's Net Income for the trailing twelve months (TTM) ended in Sep. 2025 was 0 (Mar. 2025 ) + 50.459 (Sep. 2025 ) = ₹50.5 Mil.
Encompass Design India's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2025 was 0 (Mar. 2025 ) + 31.032 (Sep. 2025 ) = ₹31.0 Mil.
Encompass Design India's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2025 was 0 (Mar. 2025 ) + -67.018 (Sep. 2025 ) = ₹-67.0 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.
Encompass Design India (NSE:ENCOMPAS) has a Sloan Ratio % of 0.00% as of Sep. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Encompass Design India and its competitors.
Is Encompass Design India's Sloan Ratio % too high?
Encompass Design India's current Sloan Ratio % is 0.00%. Overall, Encompass Design India has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Encompass Design India's Sloan Ratio % compare to HD and LOW?
Encompass Design India's Sloan Ratio % of 0.00% 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 Encompass Design India and its competitors. Encompass Design India's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encompass Design India stock overvalued right now?
Encompass Design India (NSE:ENCOMPAS) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Encompass Design India's overall GF Score™ is 20/100 with 4 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 Encompass Design India (NSE:ENCOMPAS), the current Sloan Ratio % is 0.00% as of Sep. 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.
Encompass Design India Ltd is principally engaged in the manufacturing of home and lifestyle products, such as bed sheets, curtains, comforters, table linens, and pillow covers, as well as food products, with a primary focus on sauces, marketed under its own brands. The company is also involved in the trading of agro-based products, cotton, and fabrics. The company's business operations are spread across multiple segments, including manufacturing of home and lifestyle products, development and marketing of food products, trading of fabrics, cotton and agro-based products, and (iv) providing digital and e-commerce support services. The company derives revenue from the manufacturing and export of its Textile and Sauces Food brands.
20GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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