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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.
Sleep Cycle AB's Sloan Ratio for the quarter that ended in Mar. 2026 was 11.03%.
As of Mar. 2026, Sleep Cycle AB has a Sloan Ratio of 11.03%, indicating there is a warning stage of accrual build up.
Sleep Cycle AB (OSTO:SLEEP) 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, Sleep Cycle AB has a Sloan Ratio of 11.03%, indicating there is a warning stage of accrual build up.
Sleep Cycle AB Sloan Ratio % Related Terms
Sleep Cycle AB Sloan Ratio % Historical Data
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The historical data trend for Sleep Cycle AB'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.
OSTO:SLEEP vs QH, SHOP, UBER: Sloan Ratio % Comparison
For the Software - Application subindustry, Sleep Cycle AB'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.
Sleep Cycle AB Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Sleep Cycle AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sleep Cycle AB'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.
Sleep Cycle AB's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Sleep Cycle AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 14.488 (Jun. 2025 ) + 13.547 (Sep. 2025 ) + 11.382 (Dec. 2025 ) + 5.505 (Mar. 2026 ) = kr44.9 Mil.
Sleep Cycle AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 19.917 (Jun. 2025 ) + 5.51 (Sep. 2025 ) + 10.792 (Dec. 2025 ) + 7.184 (Mar. 2026 ) = kr43.4 Mil.
Sleep Cycle AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -2.971 (Jun. 2025 ) + -2.565 (Sep. 2025 ) + -3.814 (Dec. 2025 ) + -11.981 (Mar. 2026 ) = kr-21.3 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.
Sleep Cycle AB (OSTO:SLEEP) has a Sloan Ratio % of 11.03% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Sleep Cycle AB and its competitors.
Is Sleep Cycle AB's Sloan Ratio % too high?
Sleep Cycle AB's current Sloan Ratio % is 11.03%. Overall, Sleep Cycle AB has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sleep Cycle AB's Sloan Ratio % compare to QH and SHOP?
Sleep Cycle AB's Sloan Ratio % of 11.03% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Sleep Cycle AB and its competitors. Sleep Cycle AB's current Sloan Ratio % is 11.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Cycle AB stock overvalued right now?
Based on GuruFocus' analysis, Sleep Cycle AB (OSTO:SLEEP) is currently considered Modestly Undervalued. The stock's GF Value™ is kr29.50, compared to a current price of kr24.75 — trading 16.1% below its estimated fair value. The current Sloan Ratio % is 11.03%. Sleep Cycle AB's overall GF Score™ is 91/100 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 Sleep Cycle AB (OSTO:SLEEP), the current Sloan Ratio % is 11.03% 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 Sleep Cycle AB (OSTO:SLEEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Cycle AB stock appears to be undervalued.
The current stock price of kr24.75 is trading 16.1% below its estimated GF Value™ of kr29.50.
GuruFocus considers Sleep Cycle AB to be Modestly Undervalued.
Key valuation signals for OSTO:SLEEP:
Sloan Ratio %: 11.03%
GF Value™: kr29.50 vs. price of kr24.75 (16.1% below fair value)
No single metric tells the full story. See the OSTO:SLEEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Cycle AB is a sleep tracker application. It helps people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks sleep patterns through the night and wakes up users in the light-sleep phase, providing valuable insights designed to improve sleep quality. Geographically group operates in Sweden and other countries in which all of revenue is generated from Sweden.
91GF Score
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