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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.
The Toro Co's Sloan Ratio for the quarter that ended in Apr. 2026 was -6.23%.
As of Apr. 2026, The Toro Co has a Sloan Ratio of -6.23%, indicating the company is in the safe zone and there is no funny business with accruals.
The Toro Co (NYSE:TTC) 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 Apr. 2026, The Toro Co has a Sloan Ratio of -6.23%, indicating the company is in the safe zone and there is no funny business with accruals.
The Toro Co Sloan Ratio % Related Terms
The Toro Co Sloan Ratio % Historical Data
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The historical data trend for The Toro Co'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 Tools & Accessories subindustry, The Toro 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.
The Toro Co Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Toro Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Toro 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.
The Toro Co's Sloan Ratio for the fiscal year that ended in Oct. 2025 is calculated as
The Toro Co's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 53.5 (Jul. 2025 ) + 73 (Oct. 2025 ) + 67.9 (Jan. 2026 ) + 145.4 (Apr. 2026 ) = $340 Mil.
The Toro Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 225.8 (Jul. 2025 ) + 313.1 (Oct. 2025 ) + 26.1 (Jan. 2026 ) + 267.4 (Apr. 2026 ) = $832 Mil.
The Toro Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -8.3 (Jul. 2025 ) + -26.7 (Oct. 2025 ) + -210.4 (Jan. 2026 ) + -16.3 (Apr. 2026 ) = $-262 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.
The Toro Co (TTC) has a Sloan Ratio % of -6.23% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on The Toro Co and its competitors.
Is The Toro Co's Sloan Ratio % too high?
The Toro Co's current Sloan Ratio % is -6.23%. Overall, The Toro Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Toro Co's Sloan Ratio % compare to TKR and SWK?
The Toro Co's Sloan Ratio % of -6.23% 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 The Toro Co and its competitors. The Toro Co's current Sloan Ratio % is -6.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Toro Co stock overvalued right now?
Based on GuruFocus' analysis, The Toro Co (TTC) is currently considered Fairly Valued. The stock's GF Value™ is $94.43, compared to a current price of $91.58 — trading 3% below its estimated fair value. The current Sloan Ratio % is -6.23%. The Toro Co's overall GF Score™ is 92/100 with 2 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 The Toro Co (TTC), the current Sloan Ratio % is -6.23% as of Apr. 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 The Toro Co (TTC) Overvalued in 2026?
Based on GuruFocus' analysis, The Toro Co stock appears to be undervalued.
The current stock price of $91.58 is trading 3% below its estimated GF Value™ of $94.43.
GuruFocus considers The Toro Co to be Fairly Valued.
Key valuation signals for TTC:
Sloan Ratio %: -6.23%
GF Value™: $94.43 vs. price of $91.58 (3% below fair value)
No single metric tells the full story. See the TTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Toro Co designs, manufactures, markets, and sells professional turf maintenance equipment and services; turf and agricultural irrigation systems; landscaping equipment and lighting products; snow and ice management equipment; construction equipment; and residential yard and snow thrower products. The company operates through Professional and Residential segments, with the Professional segment serving commercial, agricultural, and construction customers and generating the majority of revenue, while the Residential segment focuses on homeowners. Its products are sold through distributors, dealers, retailers, rental centers, and direct channels, with the United States as its primary revenue-generating market.
92GF 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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