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.
As of Mar. 2026, Advanced Micro Devices has a Sloan Ratio of 3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Micro Devices (XSWX:AMD) 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, Advanced Micro Devices has a Sloan Ratio of 3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Micro Devices Sloan Ratio % Related Terms
Advanced Micro Devices Sloan Ratio % Historical Data
* 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.
XSWX:AMD vs INTC, MU, TXN: Sloan Ratio % Comparison
For the Semiconductors subindustry, Advanced Micro 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.
Advanced Micro Devices Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Micro Devices's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Advanced Micro 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.
Advanced Micro Devices's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Advanced Micro Devices's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 709.11 (Jun. 2025 ) + 989.552 (Sep. 2025 ) + 1204.116 (Dec. 2025 ) + 1088.836 (Mar. 2026 ) = CHF3,992 Mil.
Advanced Micro Devices's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 1635.345 (Jun. 2025 ) + 1718.78 (Sep. 2025 ) + 2071.94 (Dec. 2025 ) + 2326.472 (Mar. 2026 ) = CHF7,753 Mil.
Advanced Micro Devices's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1868.734 (Jun. 2025 ) + -1064.386 (Sep. 2025 ) + -1228.023 (Dec. 2025 ) + -2019.425 (Mar. 2026 ) = CHF-6,181 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.
Advanced Micro Devices (XSWX:AMD) has a Sloan Ratio % of 3.86% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Advanced Micro Devices and its competitors.
Is Advanced Micro Devices' Sloan Ratio % too high?
Advanced Micro Devices' current Sloan Ratio % is 3.86%. Overall, Advanced Micro Devices has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Micro Devices' Sloan Ratio % compare to INTC and MU?
Advanced Micro Devices' Sloan Ratio % of 3.86% can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors 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 Advanced Micro Devices and its competitors. Advanced Micro Devices's current Sloan Ratio % is 3.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Micro Devices stock overvalued right now?
Based on GuruFocus' analysis, Advanced Micro Devices (XSWX:AMD) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF190.40, compared to a current price of CHF419.32 — trading 120.2% above its estimated fair value. The current Sloan Ratio % is 3.86%. Advanced Micro Devices' overall GF Score™ is 80/100 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 Advanced Micro Devices (XSWX:AMD), the current Sloan Ratio % is 3.86% 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 Advanced Micro Devices (XSWX:AMD) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Micro Devices stock appears to be overvalued.
The current stock price of CHF419.32 is trading 120.2% above its estimated GF Value™ of CHF190.40.
GuruFocus considers Advanced Micro Devices to be Significantly Overvalued.
Key valuation signals for XSWX:AMD:
Sloan Ratio %: 3.86%
GF Value™: CHF190.40 vs. price of CHF419.32 (120.2% above fair value)
No single metric tells the full story. See the XSWX:AMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers (including artificial intelligence), industrial, and automotive applications. AMD's traditional strength was in central processing units and graphics processing units used in PCs and data centers. However, AMD is emerging as a prominent player in AI GPUs and related hardware. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox.
80GF Score
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