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.
Swire Pacific's Sloan Ratio for the quarter that ended in Dec. 2025 was -2.20%.
As of Dec. 2025, Swire Pacific has a Sloan Ratio of -2.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Swire Pacific (OTCPK:SWRBY) 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 Dec. 2025, Swire Pacific has a Sloan Ratio of -2.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Swire Pacific Sloan Ratio % Related Terms
Swire Pacific Sloan Ratio % Historical Data
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The historical data trend for Swire Pacific'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 Conglomerates subindustry, Swire Pacific'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.
Swire Pacific Sloan Ratio % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Swire Pacific's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Swire Pacific'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.
Swire Pacific's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Swire Pacific's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 103.84 (Jun. 2025 ) + 272.851 (Dec. 2025 ) = $377 Mil.
Swire Pacific's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 975.078 (Jun. 2025 ) + 886.541 (Dec. 2025 ) = $1,862 Mil.
Swire Pacific's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -190.098 (Jun. 2025 ) + 54.493 (Dec. 2025 ) = $-136 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.
Swire Pacific (SWRBY) has a Sloan Ratio % of -2.20% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Swire Pacific and its competitors.
Is Swire Pacific's Sloan Ratio % too high?
Swire Pacific's current Sloan Ratio % is -2.20%. Overall, Swire Pacific has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Swire Pacific's Sloan Ratio % compare to HON and MMM?
Swire Pacific's Sloan Ratio % of -2.20% can be compared against companies in the Conglomerates 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 Conglomerates company?
A good Sloan Ratio % depends on the Conglomerates 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 Swire Pacific and its competitors. Swire Pacific's current Sloan Ratio % is -2.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swire Pacific stock overvalued right now?
Based on GuruFocus' analysis, Swire Pacific (SWRBY) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.83, compared to a current price of $8.25 — trading 191.5% above its estimated fair value. The current Sloan Ratio % is -2.20%. Swire Pacific's overall GF Score™ is 62/100 with 6 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 Swire Pacific (SWRBY), the current Sloan Ratio % is -2.20% as of Dec. 2025. 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 Swire Pacific (SWRBY) Overvalued in 2026?
Based on GuruFocus' analysis, Swire Pacific stock appears to be overvalued.
The current stock price of $8.25 is trading 191.5% above its estimated GF Value™ of $2.83.
GuruFocus considers Swire Pacific to be Significantly Overvalued.
Key valuation signals for SWRBY:
Sloan Ratio %: -2.20%
GF Value™: $2.83 vs. price of $8.25 (191.5% above fair value)
No single metric tells the full story. See the SWRBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swire Pacific is a Hong Kong-based conglomerate with interests in property, aviation, beverage, trading, and industrials. The property division, an 82% stake in Swire Properties, contributes more than half of the group's operating profit. The beverage division is one of two Coca-Cola bottlers in mainland China and also a bottler in Hong Kong, Taiwan, Thailand, Laos, Vietnam, and Cambodia. The aviation division consists of Haeco, an aircraft engineering company, and a 45% stake in Cathay Pacific. John Swire & Sons, the parent company, holds a 64% stake in Swire Pacific but has 71% of the voting rights through a dual-class share structure.
62GF Score
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