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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.
McGraw Hill's Sloan Ratio for the quarter that ended in Mar. 2026 was -1.68%.
As of Mar. 2026, McGraw Hill has a Sloan Ratio of -1.68%, indicating the company is in the safe zone and there is no funny business with accruals.
McGraw Hill (NYSE:MH) 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, McGraw Hill has a Sloan Ratio of -1.68%, indicating the company is in the safe zone and there is no funny business with accruals.
McGraw Hill Sloan Ratio % Related Terms
McGraw Hill Sloan Ratio % Historical Data
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The historical data trend for McGraw Hill'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 Education & Training Services subindustry, McGraw Hill'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.
McGraw Hill Sloan Ratio % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where McGraw Hill'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.
McGraw Hill's Sloan Ratio for the fiscal year that ended in Mar. 2026 is calculated as
McGraw Hill's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 0.502 (Jun. 2025 ) + 105.284 (Sep. 2025 ) + -20.199 (Dec. 2025 ) + -50.267 (Mar. 2026 ) = $35 Mil.
McGraw Hill's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -96.652 (Jun. 2025 ) + 264.983 (Sep. 2025 ) + 308.966 (Dec. 2025 ) + -146.124 (Mar. 2026 ) = $331 Mil.
McGraw Hill's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -39.071 (Jun. 2025 ) + -47.483 (Sep. 2025 ) + -51.165 (Dec. 2025 ) + -66.144 (Mar. 2026 ) = $-204 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.
McGraw Hill (MH) has a Sloan Ratio % of -1.68% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on McGraw Hill and its competitors.
Is McGraw Hill's Sloan Ratio % too high?
McGraw Hill's current Sloan Ratio % is -1.68%. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Sloan Ratio % compare to STRA and COUR?
McGraw Hill's Sloan Ratio % of -1.68% can be compared against companies in the Education 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 Education company?
A good Sloan Ratio % depends on the Education 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 McGraw Hill and its competitors. McGraw Hill's current Sloan Ratio % is -1.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (MH) has a current Sloan Ratio % of -1.68%. The current Sloan Ratio % is -1.68%. McGraw Hill's overall GF Score™ is 31/100 with 5 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 McGraw Hill (MH), the current Sloan Ratio % is -1.68% 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.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
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