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.
US Foods Holding's Sloan Ratio for the quarter that ended in Mar. 2026 was -0.92%.
As of Mar. 2026, US Foods Holding has a Sloan Ratio of -0.92%, indicating the company is in the safe zone and there is no funny business with accruals.
US Foods Holding (NYSE:USFD) 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, US Foods Holding has a Sloan Ratio of -0.92%, indicating the company is in the safe zone and there is no funny business with accruals.
US Foods Holding Sloan Ratio % Related Terms
US Foods Holding Sloan Ratio % Historical Data
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The historical data trend for US Foods Holding'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 Food Distribution subindustry, US Foods Holding'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.
US Foods Holding Sloan Ratio % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where US Foods Holding'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.
US Foods Holding's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
US Foods Holding's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 224 (Jun. 2025 ) + 153 (Sep. 2025 ) + 184 (Dec. 2025 ) + 116 (Mar. 2026 ) = $677 Mil.
US Foods Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 334 (Jun. 2025 ) + 351 (Sep. 2025 ) + 293 (Dec. 2025 ) + 294 (Mar. 2026 ) = $1,272 Mil.
US Foods Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -75 (Jun. 2025 ) + -114 (Sep. 2025 ) + -178 (Dec. 2025 ) + -97 (Mar. 2026 ) = $-464 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.
US Foods Holding (USFD) has a Sloan Ratio % of -0.92% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on US Foods Holding and its competitors.
Is US Foods Holding's Sloan Ratio % too high?
US Foods Holding's current Sloan Ratio % is -0.92%. Overall, US Foods Holding has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does US Foods Holding's Sloan Ratio % compare to PFGC and CHEF?
US Foods Holding's Sloan Ratio % of -0.92% can be compared against companies in the Retail - Defensive 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 Retail - Defensive company?
A good Sloan Ratio % depends on the Retail - Defensive 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 US Foods Holding and its competitors. US Foods Holding's current Sloan Ratio % is -0.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Foods Holding stock overvalued right now?
Based on GuruFocus' analysis, US Foods Holding (USFD) is currently considered Significantly Overvalued. The stock's GF Value™ is $74.17, compared to a current price of $100.98 — trading 36.1% above its estimated fair value. The current Sloan Ratio % is -0.92%. US Foods Holding's overall GF Score™ is 82/100 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 US Foods Holding (USFD), the current Sloan Ratio % is -0.92% 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.
Is US Foods Holding (USFD) Overvalued in 2026?
Based on GuruFocus' analysis, US Foods Holding stock appears to be overvalued.
The current stock price of $100.98 is trading 36.1% above its estimated GF Value™ of $74.17.
GuruFocus considers US Foods Holding to be Significantly Overvalued.
Key valuation signals for USFD:
Sloan Ratio %: -0.92%
GF Value™: $74.17 vs. price of $100.98 (36.1% above fair value)
No single metric tells the full story. See the USFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Foods Holding Corp is a U.S. food service distributor that distributes food and nonfood products to the healthcare and hospitality industries, restaurants, education, government facilities, and grocers. It has various customer locations across the United States, with a vast network of distribution facilities, a fleet of trucks, and cash and carry locations offering food and non-food products, and a comprehensive suite of e-commerce, technology, and business solutions to its customers. The company operates in one business segment in which it markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers throughout the U.S. The products offered are as snacks, beverages, fresh produce, sauces, condiments, canned/frozen fruits and others.
82GF Score
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