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.
Rational AG's Sloan Ratio for the quarter that ended in Mar. 2026 was 0.85%.
As of Mar. 2026, Rational AG has a Sloan Ratio of 0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Rational AG (OTCPK:RTLLF) 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, Rational AG has a Sloan Ratio of 0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Rational AG Sloan Ratio % Related Terms
Rational AG Sloan Ratio % Historical Data
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The historical data trend for Rational AG'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 Specialty Industrial Machinery subindustry, Rational 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.
Rational AG Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rational AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rational AG'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.
Rational AG's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Rational AG's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 73.105 (Jun. 2025 ) + 73.749 (Sep. 2025 ) + 82.857 (Dec. 2025 ) + 68.496 (Mar. 2026 ) = $298 Mil.
Rational AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 89.646 (Jun. 2025 ) + 125.802 (Sep. 2025 ) + 77.82 (Dec. 2025 ) + 32.206 (Mar. 2026 ) = $325 Mil.
Rational AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 89.817 (Jun. 2025 ) + -75.457 (Sep. 2025 ) + -52.121 (Dec. 2025 ) + -1.647 (Mar. 2026 ) = $-39 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.
Rational AG (RTLLF) has a Sloan Ratio % of 0.85% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rational AG and its competitors.
Is Rational AG's Sloan Ratio % too high?
Rational AG's current Sloan Ratio % is 0.85%. Overall, Rational AG has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rational AG's Sloan Ratio % compare to GEV and ETN?
Rational AG's Sloan Ratio % of 0.85% can be compared against companies in the Industrial Products 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 Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products 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 Rational AG and its competitors. Rational AG's current Sloan Ratio % is 0.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rational AG stock overvalued right now?
Based on GuruFocus' analysis, Rational AG (RTLLF) is currently considered Modestly Undervalued. The stock's GF Value™ is $883.76, compared to a current price of $734.06 — trading 16.9% below its estimated fair value. The current Sloan Ratio % is 0.85%. Rational AG's overall GF Score™ is 95/100 with 1 warning sign 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 Rational AG (RTLLF), the current Sloan Ratio % is 0.85% 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 Rational AG (RTLLF) Overvalued in 2026?
Based on GuruFocus' analysis, Rational AG stock appears to be undervalued.
The current stock price of $734.06 is trading 16.9% below its estimated GF Value™ of $883.76.
GuruFocus considers Rational AG to be Modestly Undervalued.
Key valuation signals for RTLLF:
Sloan Ratio %: 0.85%
GF Value™: $883.76 vs. price of $734.06 (16.9% below fair value)
No single metric tells the full story. See the RTLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rational specializes in manufacturing automated multifunctional ovens for professional kitchens that replace conventional cooking appliances such as a stove, grill, and oven. Rational has produced over 1 million combi-steamers since its first combi-steamer in 1976, which are used to prepare 160 million food dishes daily. Approximately 72% of group revenue is generated from the sale of cooking appliances, mostly the iCombi Pro that was launched in May 2020 and its predecessor product. Rational has a presence in over 120 countries. The majority of revenue is earned in Europe, followed by North America and Asia.
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