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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, Avic Heavy Machinery Co has a Sloan Ratio of 3.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Avic Heavy Machinery Co (SHSE:600765) 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, Avic Heavy Machinery Co has a Sloan Ratio of 3.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Avic Heavy Machinery Co Sloan Ratio % Related Terms
Avic Heavy Machinery Co 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.
SHSE:600765 vs GEV, ETN, PH: Sloan Ratio % Comparison
For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery Co'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.
Avic Heavy Machinery Co Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Avic Heavy Machinery Co'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.
Avic Heavy Machinery Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Avic Heavy Machinery Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 123.711 (Sep. 2025 ) + -6.924 (Dec. 2025 ) + 157.977 (Mar. 2026 ) + 285.6 (Jun. 2026 ) = ¥560 Mil.
Avic Heavy Machinery Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was -239.848 (Sep. 2025 ) + -254.267 (Dec. 2025 ) + 211.047 (Mar. 2026 ) + 228.484 (Jun. 2026 ) = ¥-55 Mil.
Avic Heavy Machinery Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -167.814 (Sep. 2025 ) + -379.419 (Dec. 2025 ) + -130.675 (Mar. 2026 ) + 240.74 (Jun. 2026 ) = ¥-437 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.
Avic Heavy Machinery Co (SHSE:600765) has a Sloan Ratio % of 3.41% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Avic Heavy Machinery Co and its competitors.
Is Avic Heavy Machinery Co's Sloan Ratio % too high?
Avic Heavy Machinery Co's current Sloan Ratio % is 3.41%. Overall, Avic Heavy Machinery Co has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avic Heavy Machinery Co's Sloan Ratio % compare to GEV and ETN?
Avic Heavy Machinery Co's Sloan Ratio % of 3.41% 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 Avic Heavy Machinery Co and its competitors. Avic Heavy Machinery Co's current Sloan Ratio % is 3.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥16.98, compared to a current price of ¥14.10 — trading 17% below its estimated fair value. The current Sloan Ratio % is 3.41%. Avic Heavy Machinery Co's overall GF Score™ is 68/100 with 10 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 Avic Heavy Machinery Co (SHSE:600765), the current Sloan Ratio % is 3.41% 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?
Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued.
The current stock price of ¥14.10 is trading 17% below its estimated GF Value™ of ¥16.98.
GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:600765:
Sloan Ratio %: 3.41%
GF Value™: ¥16.98 vs. price of ¥14.10 (17% below fair value)
No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
68GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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