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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.
Royal Arc Electrodes's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.00%.
As of Mar. 2026, Royal Arc Electrodes has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Royal Arc Electrodes (NSE:ROYALARC) 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, Royal Arc Electrodes has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Royal Arc Electrodes Sloan Ratio % Related Terms
Royal Arc Electrodes Sloan Ratio % Historical Data
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The historical data trend for Royal Arc Electrodes'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 Electrical Equipment & Parts subindustry, Royal Arc Electrodes'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.
Royal Arc Electrodes Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes'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.
Royal Arc Electrodes's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Royal Arc Electrodes's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 58.676 (Mar. 2025 ) + 57.308 (Mar. 2026 ) = ₹116.0 Mil.
Royal Arc Electrodes's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 38.851 (Mar. 2025 ) + 0 (Mar. 2026 ) = ₹38.9 Mil.
Royal Arc Electrodes's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -35.535 (Mar. 2025 ) + 0 (Mar. 2026 ) = ₹-35.5 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.
Royal Arc Electrodes (NSE:ROYALARC) has a Sloan Ratio % of 0.00% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Royal Arc Electrodes and its competitors.
Is Royal Arc Electrodes' Sloan Ratio % too high?
Royal Arc Electrodes' current Sloan Ratio % is 0.00%. Overall, Royal Arc Electrodes has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Sloan Ratio % compare to VRT and BE?
Royal Arc Electrodes' Sloan Ratio % of 0.00% can be compared against companies in the Industrial Products 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 Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products 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 Royal Arc Electrodes and its competitors. Royal Arc Electrodes'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 Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Royal Arc Electrodes' overall GF Score™ is 20/100 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 Royal Arc Electrodes (NSE:ROYALARC), the current Sloan Ratio % is 0.00% 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.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
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