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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.
Bank of America's Sloan Ratio for the quarter that ended in Mar. 2026 was 2.86%.
As of Mar. 2026, Bank of America has a Sloan Ratio of 2.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank of America (XSWX:BAC) 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, Bank of America has a Sloan Ratio of 2.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank of America Sloan Ratio % Related Terms
Bank of America Sloan Ratio % Historical Data
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The historical data trend for Bank of America'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 Banks - Diversified subindustry, Bank of America'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.
Bank of America Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of America's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bank of America'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.
Bank of America's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Bank of America's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 5786.731 (Jun. 2025 ) + 6742.171 (Sep. 2025 ) + 5999.063 (Dec. 2025 ) + 6758.183 (Mar. 2026 ) = CHF25,286 Mil.
Bank of America's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was -7426.142 (Jun. 2025 ) + 37316.391 (Sep. 2025 ) + -18284.871 (Dec. 2025 ) + 32885.521 (Mar. 2026 ) = CHF44,491 Mil.
Bank of America's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -46285.718 (Jun. 2025 ) + 1546.822 (Sep. 2025 ) + -933.967 (Dec. 2025 ) + -52316.872 (Mar. 2026 ) = CHF-97,990 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.
Bank of America (XSWX:BAC) has a Sloan Ratio % of 2.86% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Bank of America and its competitors.
Is Bank of America's Sloan Ratio % too high?
Bank of America's current Sloan Ratio % is 2.86%. Overall, Bank of America has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Bank of America's Sloan Ratio % compare to WFC and C?
Bank of America's Sloan Ratio % of 2.86% can be compared against companies in the Banks 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 Banks company?
A good Sloan Ratio % depends on the Banks 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 Bank of America and its competitors. Bank of America's current Sloan Ratio % is 2.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Bank of America (XSWX:BAC) has a current Sloan Ratio % of 2.86%. The stock's GF Value™ is CHF40.39, compared to a current price of CHF48.07 — trading 19% above its estimated fair value. The current Sloan Ratio % is 2.86%. Bank of America's overall GF Score™ is 78/100 with 7 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 Bank of America (XSWX:BAC), the current Sloan Ratio % is 2.86% 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 Bank of America (XSWX:BAC) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of America stock appears to be overvalued.
The current stock price of CHF48.07 is trading 19% above its estimated GF Value™ of CHF40.39.
Key valuation signals for XSWX:BAC:
Sloan Ratio %: 2.86%
GF Value™: CHF40.39 vs. price of CHF48.07 (19% above fair value)
No single metric tells the full story. See the XSWX:BAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
78GF Score
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