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.
Axon Enterprise's Sloan Ratio for the quarter that ended in Mar. 2026 was 9.79%.
As of Mar. 2026, Axon Enterprise has a Sloan Ratio of 9.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Axon Enterprise (XSWX:AXON) 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, Axon Enterprise has a Sloan Ratio of 9.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Axon Enterprise Sloan Ratio % Related Terms
Axon Enterprise Sloan Ratio % Historical Data
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The historical data trend for Axon Enterprise'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 Aerospace & Defense subindustry, Axon Enterprise'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.
Axon Enterprise Sloan Ratio % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Axon Enterprise'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.
Axon Enterprise's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Axon Enterprise's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 36.117 (Jun. 2025 ) + -2.186 (Sep. 2025 ) + 2.745 (Dec. 2025 ) + 169.312 (Mar. 2026 ) = CHF206 Mil.
Axon Enterprise's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -91.704 (Jun. 2025 ) + 60.014 (Sep. 2025 ) + 217.235 (Dec. 2025 ) + -31.517 (Mar. 2026 ) = CHF154 Mil.
Axon Enterprise's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -386.532 (Jun. 2025 ) + 590.259 (Sep. 2025 ) + -226.44 (Dec. 2025 ) + -616.937 (Mar. 2026 ) = CHF-640 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.
Axon Enterprise (XSWX:AXON) has a Sloan Ratio % of 9.79% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Axon Enterprise and its competitors.
Is Axon Enterprise's Sloan Ratio % too high?
Axon Enterprise's current Sloan Ratio % is 9.79%. Overall, Axon Enterprise has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Sloan Ratio % compare to ?
Axon Enterprise's Sloan Ratio % of 9.79% can be compared against companies in the Aerospace & Defense 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 Aerospace & Defense company?
A good Sloan Ratio % depends on the Aerospace & Defense 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 Axon Enterprise and its competitors. Axon Enterprise's current Sloan Ratio % is 9.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axon Enterprise stock overvalued right now?
Axon Enterprise (XSWX:AXON) has a current Sloan Ratio % of 9.79%. The stock's GF Value™ is CHF482.93, compared to a current price of CHF476.80 — trading 1.3% below its estimated fair value. The current Sloan Ratio % is 9.79%. Axon Enterprise's overall GF Score™ is 81/100 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 Axon Enterprise (XSWX:AXON), the current Sloan Ratio % is 9.79% 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 Axon Enterprise (XSWX:AXON) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of CHF476.80 is trading 1.3% below its estimated GF Value™ of CHF482.93.
Key valuation signals for XSWX:AXON:
Sloan Ratio %: 9.79%
GF Value™: CHF482.93 vs. price of CHF476.80 (1.3% below fair value)
No single metric tells the full story. See the XSWX:AXON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, TASER energy devices, drones and robotic security, and training solutions. Its operation comprises of two operating segments, Software and Services, and Connected Devices. The company generates the majority of its revenue from the Connected Devices segment, which is engaged in developing, manufacturing, and selling fully integrated hardware solutions such as conducted energy devices sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
81GF Score
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