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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.
As of Jun. 2026, Universal Technical Institute has a Sloan Ratio of 5.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Universal Technical Institute (NYSE:UTI) 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 Jun. 2026, Universal Technical Institute has a Sloan Ratio of 5.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Universal Technical Institute Sloan Ratio % Related Terms
Universal Technical Institute 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 Education & Training Services subindustry, Universal Technical Institute'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.
Universal Technical Institute Sloan Ratio % vs Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Sloan Ratio % falls into.
Universal Technical Institute 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.
Universal Technical Institute's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 18.756 (Sep. 2025 ) + 12.827 (Dec. 2025 ) + 0.433 (Mar. 2026 ) + 2.279 (Jun. 2026 ) = $34.3 Mil.
Universal Technical Institute's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 57.104 (Sep. 2025 ) + 3.084 (Dec. 2025 ) + 3.985 (Mar. 2026 ) + 10.333 (Jun. 2026 ) = $74.5 Mil.
Universal Technical Institute's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -9.606 (Sep. 2025 ) + -46.556 (Dec. 2025 ) + -36.89 (Mar. 2026 ) + 3.708 (Jun. 2026 ) = $-89.3 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.
Universal Technical Institute (UTI) has a Sloan Ratio % of 5.47% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Universal Technical Institute and its competitors.
Is Universal Technical Institute's Sloan Ratio % too high?
Universal Technical Institute's current Sloan Ratio % is 5.47%. Overall, Universal Technical Institute has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Technical Institute's Sloan Ratio % compare to PRDO and MH?
Universal Technical Institute's Sloan Ratio % of 5.47% 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 Universal Technical Institute and its competitors. Universal Technical Institute's current Sloan Ratio % is 5.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Technical Institute stock overvalued right now?
Based on GuruFocus' analysis, Universal Technical Institute (UTI) is currently considered Modestly Undervalued. The stock's GF Value™ is $28.48, compared to a current price of $25.15 — trading 11.7% below its estimated fair value. The current Sloan Ratio % is 5.47%. Universal Technical Institute's overall GF Score™ is 85/100 with 3 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 Universal Technical Institute (UTI), the current Sloan Ratio % is 5.47% as of Jun. 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 Universal Technical Institute (UTI) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Technical Institute stock appears to be undervalued.
The current stock price of $25.15 is trading 11.7% below its estimated GF Value™ of $28.48.
GuruFocus considers Universal Technical Institute to be Modestly Undervalued.
Key valuation signals for UTI:
Sloan Ratio %: 5.47%
GF Value™: $28.48 vs. price of $25.15 (11.7% below fair value)
No single metric tells the full story. See the UTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment which includes Universal Technical Institute (UTI) and Concorde Career Colleges, Corporate. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.
85GF Score
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