Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Wearable Devices's Sloan Ratio for the quarter that ended in Dec. 2025 was 47.13%.
Warning Sign:
When sloan ratio (47.13)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2025, Wearable Devices has a Sloan Ratio of 47.13%, indicating earnings are more likely to be made up of accruals.
Wearable Devices (NAS:WLDS) 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, Wearable Devices has a Sloan Ratio of 47.13%, indicating earnings are more likely to be made up of accruals.
Wearable Devices Sloan Ratio % Related Terms
Wearable Devices Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Wearable Devices'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 Consumer Electronics subindustry, Wearable Devices'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.
Wearable Devices Sloan Ratio % vs Hardware Industry
For the Hardware industry and Technology sector, Wearable Devices's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wearable Devices'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.
Wearable Devices'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.
Wearable Devices's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was -3.715 (Jun. 2025 ) + -4.392 (Dec. 2025 ) = $-8.11 Mil.
Wearable Devices's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was -2.967 (Jun. 2025 ) + -3.631 (Dec. 2025 ) = $-6.60 Mil.
Wearable Devices's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -0.529 (Jun. 2025 ) + -10.401 (Dec. 2025 ) = $-10.93 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.
Wearable Devices (WLDS) has a Sloan Ratio % of 47.13% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Wearable Devices and its competitors.
Is Wearable Devices' Sloan Ratio % too high?
Wearable Devices' current Sloan Ratio % is 47.13%. Overall, Wearable Devices has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wearable Devices' Sloan Ratio % compare to MSN and RIME?
Wearable Devices' Sloan Ratio % of 47.13% can be compared against companies in the Hardware 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 Hardware company?
A good Sloan Ratio % depends on the Hardware 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 Wearable Devices and its competitors. Wearable Devices's current Sloan Ratio % is 47.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wearable Devices stock overvalued right now?
Based on GuruFocus' analysis, Wearable Devices (WLDS) is currently considered Possible Value Trap. The stock's GF Value™ is $24.97, compared to a current price of $2.82 — trading 88.7% below its estimated fair value. The current Sloan Ratio % is 47.13%. Wearable Devices' overall GF Score™ is 47/100 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 Wearable Devices (WLDS), the current Sloan Ratio % is 47.13% 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 Wearable Devices (WLDS) Overvalued in 2026?
Based on GuruFocus' analysis, Wearable Devices stock appears to be undervalued.
The current stock price of $2.82 is trading 88.7% below its estimated GF Value™ of $24.97.
GuruFocus considers Wearable Devices to be Possible Value Trap.
Key valuation signals for WLDS:
Sloan Ratio %: 47.13%
GF Value™: $24.97 vs. price of $2.82 (88.7% below fair value)
No single metric tells the full story. See the WLDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wearable Devices Ltd develops and sells human-machine interface solutions for the smart wearables industry. These digital devices include consumer electronics, smart watches, smartphones, AR glasses, VR headsets, televisions, PCs, laptop computers, drones, robots, etc. The company has completed the transition phase from research and development to commercialization of technology into B2B and B2C products. Its products include Mudra Inspire, a band for the Apple Watch that allows touchless operation and control of Apple ecosystem devices such as iPhone, Mac computer, Apple TV, and iPad, inter alia.
47GF Score
Get the complete analysis for WLDS
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WLDS has been successfully added to your 
