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.
Safe Pro Group's Sloan Ratio for the quarter that ended in Mar. 2026 was -38.82%.
Warning Sign:
When sloan ratio (-41.15)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2026, Safe Pro Group has a Sloan Ratio of -38.82%, indicating earnings are more likely to be made up of accruals.
Safe Pro Group (NAS:SPAI) 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, Safe Pro Group has a Sloan Ratio of -38.82%, indicating earnings are more likely to be made up of accruals.
Safe Pro Group Sloan Ratio % Related Terms
Safe Pro Group Sloan Ratio % Historical Data
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The historical data trend for Safe Pro Group'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 Aerospace & Defense subindustry, Safe Pro Group'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.
Safe Pro Group Sloan Ratio % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Safe Pro Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Safe Pro Group'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.
Safe Pro Group's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Safe Pro Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was -1.915 (Jun. 2025 ) + -5.01 (Sep. 2025 ) + -3.433 (Dec. 2025 ) + -2.793 (Mar. 2026 ) = $-13.15 Mil.
Safe Pro Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -1.011 (Jun. 2025 ) + -1.597 (Sep. 2025 ) + -2.667 (Dec. 2025 ) + -1.178 (Mar. 2026 ) = $-6.45 Mil.
Safe Pro Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -0.103 (Jun. 2025 ) + -0.008 (Sep. 2025 ) + -0.008 (Dec. 2025 ) + -0.082 (Mar. 2026 ) = $-0.20 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.
Safe Pro Group (SPAI) has a Sloan Ratio % of -38.82% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Safe Pro Group and its competitors.
Is Safe Pro Group's Sloan Ratio % too high?
Safe Pro Group's current Sloan Ratio % is -38.82%. Overall, Safe Pro Group has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Safe Pro Group's Sloan Ratio % compare to OPXS and GPUS?
Safe Pro Group's Sloan Ratio % of -38.82% can be compared against companies in the Aerospace & Defense 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 Aerospace & Defense company?
A good Sloan Ratio % depends on the Aerospace & Defense 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 Safe Pro Group and its competitors. Safe Pro Group's current Sloan Ratio % is -38.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safe Pro Group stock overvalued right now?
Safe Pro Group (SPAI) has a current Sloan Ratio % of -38.82%. The current Sloan Ratio % is -38.82%. Safe Pro Group's overall GF Score™ is 13/100 with 4 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 Safe Pro Group (SPAI), the current Sloan Ratio % is -38.82% 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.
Safe Pro Group Inc operates to acquire security and protection products. The company operated in three reportable business segments, which consisted of the business of Safe-Pro USA, the business of Airborne Response, and the business of Safe Pro AI. The majority of revenue is from Safe-Pro USA.
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