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.
As of Mar. 2026, Fresenius Medical Care AG has a Sloan Ratio of -3.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Fresenius Medical Care AG (NYSE:FMS) 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, Fresenius Medical Care AG has a Sloan Ratio of -3.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Fresenius Medical Care AG Sloan Ratio % Related Terms
Fresenius Medical Care AG 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.
For the Medical Care Facilities subindustry, Fresenius Medical Care AG'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.
Fresenius Medical Care AG Sloan Ratio % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Fresenius Medical Care AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fresenius Medical Care AG's Sloan Ratio % falls into.
Fresenius Medical Care AG Sloan Ratio % Calculation
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.
Fresenius Medical Care AG's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Fresenius Medical Care AG's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 259.827 (Jun. 2025 ) + 322.532 (Sep. 2025 ) + 382.995 (Dec. 2025 ) + 135.872 (Mar. 2026 ) = $1,101 Mil.
Fresenius Medical Care AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 893.806 (Jun. 2025 ) + 870.374 (Sep. 2025 ) + 1172.934 (Dec. 2025 ) + 262.297 (Mar. 2026 ) = $3,199 Mil.
Fresenius Medical Care AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -163.845 (Jun. 2025 ) + -63.386 (Sep. 2025 ) + -489.731 (Dec. 2025 ) + -195.929 (Mar. 2026 ) = $-913 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.
Fresenius Medical Care AG (FMS) has a Sloan Ratio % of -3.26% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Fresenius Medical Care AG and its competitors.
Is Fresenius Medical Care AG's Sloan Ratio % too high?
Fresenius Medical Care AG's current Sloan Ratio % is -3.26%. Overall, Fresenius Medical Care AG has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fresenius Medical Care AG's Sloan Ratio % compare to HCA and THC?
Fresenius Medical Care AG's Sloan Ratio % of -3.26% can be compared against companies in the Healthcare Providers & Services 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 Healthcare Providers & Services company?
A good Sloan Ratio % depends on the Healthcare Providers & Services 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 Fresenius Medical Care AG and its competitors. Fresenius Medical Care AG's current Sloan Ratio % is -3.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fresenius Medical Care AG stock overvalued right now?
Based on GuruFocus' analysis, Fresenius Medical Care AG (FMS) is currently considered Fairly Valued. The stock's GF Value™ is $24.13, compared to a current price of $24.02 — trading 0.5% below its estimated fair value. The current Sloan Ratio % is -3.26%. Fresenius Medical Care AG's overall GF Score™ is 74/100 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 Fresenius Medical Care AG (FMS), the current Sloan Ratio % is -3.26% 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 Fresenius Medical Care AG (FMS) Overvalued in 2026?
Based on GuruFocus' analysis, Fresenius Medical Care AG stock appears to be undervalued.
The current stock price of $24.02 is trading 0.5% below its estimated GF Value™ of $24.13.
GuruFocus considers Fresenius Medical Care AG to be Fairly Valued.
Key valuation signals for FMS:
Sloan Ratio %: -3.26%
GF Value™: $24.13 vs. price of $24.02 (0.5% below fair value)
No single metric tells the full story. See the FMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fresenius Medical Care is the largest dialysis company in the world, treating nearly 300,000 patients from about 3,600 clinics worldwide as of December 2025. In addition to providing dialysis services, the firm is a leading supplier of dialysis products, including machines, dialyzers, and concentrates. Fresenius accounts for about 35% of the global dialysis products market, creating the world's only fully integrated dialysis business. Services account for about three-fourths of sales, while the balance is generated from medical technology products that enable dialysis treatments.
74GF Score
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