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.
TOP Financial Group's Sloan Ratio for the quarter that ended in Sep. 2025 was -10.45%.
Warning Sign:
When sloan ratio (38.17)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2025, TOP Financial Group has a Sloan Ratio of -10.45%, indicating earnings are more likely to be made up of accruals.
TOP Financial Group (NAS:TOP) 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 Sep. 2025, TOP Financial Group has a Sloan Ratio of -10.45%, indicating earnings are more likely to be made up of accruals.
TOP Financial Group Sloan Ratio % Related Terms
TOP Financial Group Sloan Ratio % Historical Data
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The historical data trend for TOP Financial 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 Capital Markets subindustry, TOP Financial 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.
TOP Financial Group Sloan Ratio % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, TOP Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TOP Financial 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.
TOP Financial Group's Sloan Ratio for the fiscal year that ended in Mar. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
TOP Financial Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2025 was -5.519 (Mar. 2025 ) + 0.191 (Sep. 2025 ) = $-5.33 Mil.
TOP Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2025 was -6.31 (Mar. 2025 ) + 7.291 (Sep. 2025 ) = $0.98 Mil.
TOP Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2025 was -0.813 (Mar. 2025 ) + 1.201 (Sep. 2025 ) = $0.39 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.
TOP Financial Group (TOP) has a Sloan Ratio % of -10.45% as of Sep. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on TOP Financial Group and its competitors.
Is TOP Financial Group's Sloan Ratio % too high?
TOP Financial Group's current Sloan Ratio % is -10.45%. Overall, TOP Financial Group has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOP Financial Group's Sloan Ratio % compare to NCTY and AURE?
TOP Financial Group's Sloan Ratio % of -10.45% can be compared against companies in the Capital Markets 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 Capital Markets company?
A good Sloan Ratio % depends on the Capital Markets 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 TOP Financial Group and its competitors. TOP Financial Group's current Sloan Ratio % is -10.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOP Financial Group stock overvalued right now?
Based on GuruFocus' analysis, TOP Financial Group (TOP) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.45, compared to a current price of $1.77 — trading 22.1% above its estimated fair value. The current Sloan Ratio % is -10.45%. TOP Financial Group's overall GF Score™ is 66/100 with 9 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 TOP Financial Group (TOP), the current Sloan Ratio % is -10.45% as of Sep. 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 TOP Financial Group (TOP) Overvalued in 2026?
Based on GuruFocus' analysis, TOP Financial Group stock appears to be overvalued.
The current stock price of $1.77 is trading 22.1% above its estimated GF Value™ of $1.45.
GuruFocus considers TOP Financial Group to be Modestly Overvalued.
Key valuation signals for TOP:
Sloan Ratio %: -10.45%
GF Value™: $1.45 vs. price of $1.77 (22.1% above fair value)
No single metric tells the full story. See the TOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOP Financial Group Ltd is an online brokerage firm in Hong Kong specializing in trading local and overseas equities, futures, and options products. The Company generates brokerage commission income by enabling its customers to trade on multiple exchanges present globally. The company operates in only one segment which is the futures brokerage service.
66GF 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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