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.
Axos Financial's Sloan Ratio for the quarter that ended in Mar. 2026 was 17.69%.
As of Mar. 2026, Axos Financial has a Sloan Ratio of 17.69%, indicating there is a warning stage of accrual build up.
Axos Financial (NYSE:AX) 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, Axos Financial has a Sloan Ratio of 17.69%, indicating there is a warning stage of accrual build up.
Axos Financial Sloan Ratio % Related Terms
Axos Financial Sloan Ratio % Historical Data
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The historical data trend for Axos Financial'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 Banks - Regional subindustry, Axos Financial'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.
Axos Financial Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Axos Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Axos Financial'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.
Axos Financial's Sloan Ratio for the fiscal year that ended in Jun. 2025 is calculated as
Axos Financial's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 110.675 (Jun. 2025 ) + 112.352 (Sep. 2025 ) + 128.397 (Dec. 2025 ) + 124.677 (Mar. 2026 ) = $476 Mil.
Axos Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 183.352 (Jun. 2025 ) + 118.433 (Sep. 2025 ) + 104.108 (Dec. 2025 ) + 42.027 (Mar. 2026 ) = $448 Mil.
Axos Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -848.775 (Jun. 2025 ) + -1033.379 (Sep. 2025 ) + -2384.136 (Dec. 2025 ) + -880.691 (Mar. 2026 ) = $-5,147 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.
Axos Financial (AX) has a Sloan Ratio % of 17.69% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Axos Financial and its competitors.
Is Axos Financial's Sloan Ratio % too high?
Axos Financial's current Sloan Ratio % is 17.69%. Overall, Axos Financial has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axos Financial's Sloan Ratio % compare to OZK and HOMB?
Axos Financial's Sloan Ratio % of 17.69% can be compared against companies in the Banks 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 Banks company?
A good Sloan Ratio % depends on the Banks 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 Axos Financial and its competitors. Axos Financial's current Sloan Ratio % is 17.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axos Financial stock overvalued right now?
Based on GuruFocus' analysis, Axos Financial (AX) is currently considered Modestly Overvalued. The stock's GF Value™ is $88.06, compared to a current price of $97.90 — trading 11.2% above its estimated fair value. The current Sloan Ratio % is 17.69%. Axos Financial's overall GF Score™ is 85/100 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 Axos Financial (AX), the current Sloan Ratio % is 17.69% 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.
Is Axos Financial (AX) Overvalued in 2026?
Based on GuruFocus' analysis, Axos Financial stock appears to be overvalued.
The current stock price of $97.90 is trading 11.2% above its estimated GF Value™ of $88.06.
GuruFocus considers Axos Financial to be Modestly Overvalued.
Key valuation signals for AX:
Sloan Ratio %: 17.69%
GF Value™: $88.06 vs. price of $97.90 (11.2% above fair value)
No single metric tells the full story. See the AX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axos Financial Inc is a bank holding company that operates through its bank subsidiary, BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables. Its operating segments are banking business segment and securities business segment. The bank distributed its products through a wide range of retail distribution channels, including only banking brands, affinity groups, and sales teams, among others. The majority of the bank's mortgage exposure is titled toward the state of California, particularly its southern region. Net interest income is a majority of the bank's revenue.
85GF Score
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