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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.
Eli Lilly and Co's Sloan Ratio for the quarter that ended in Mar. 2026 was 14.20%.
As of Mar. 2026, Eli Lilly and Co has a Sloan Ratio of 14.20%, indicating there is a warning stage of accrual build up.
Eli Lilly and Co (XSWX:LLY) 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, Eli Lilly and Co has a Sloan Ratio of 14.20%, indicating there is a warning stage of accrual build up.
Eli Lilly and Co Sloan Ratio % Related Terms
Eli Lilly and Co Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co'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.
XSWX:LLY vs JNJ, ABBV, MRK: Sloan Ratio % Comparison
For the Drug Manufacturers - General subindustry, Eli Lilly and Co'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.
Eli Lilly and Co Sloan Ratio % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co'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.
Eli Lilly and Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Eli Lilly and Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 4603.119 (Jun. 2025 ) + 4444.228 (Sep. 2025 ) + 5289.583 (Dec. 2025 ) + 5822.871 (Mar. 2026 ) = CHF20,160 Mil.
Eli Lilly and Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 2509.942 (Jun. 2025 ) + 7034.26 (Sep. 2025 ) + 2569.684 (Dec. 2025 ) + 4198.671 (Mar. 2026 ) = CHF16,313 Mil.
Eli Lilly and Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -1491.571 (Jun. 2025 ) + -2374.448 (Sep. 2025 ) + -2233.073 (Dec. 2025 ) + -3083.067 (Mar. 2026 ) = CHF-9,182 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.
Eli Lilly and Co (XSWX:LLY) has a Sloan Ratio % of 14.20% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Eli Lilly and Co and its competitors.
Is Eli Lilly and Co's Sloan Ratio % too high?
Eli Lilly and Co's current Sloan Ratio % is 14.20%. Overall, Eli Lilly and Co has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eli Lilly and Co's Sloan Ratio % compare to JNJ and ABBV?
Eli Lilly and Co's Sloan Ratio % of 14.20% can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Sloan Ratio % depends on the Drug Manufacturers 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 Eli Lilly and Co and its competitors. Eli Lilly and Co's current Sloan Ratio % is 14.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eli Lilly and Co stock overvalued right now?
Based on GuruFocus' analysis, Eli Lilly and Co (XSWX:LLY) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF1,133.11, compared to a current price of CHF965.00 — trading 14.8% below its estimated fair value. The current Sloan Ratio % is 14.20%. Eli Lilly and Co's overall GF Score™ is 99/100 with 5 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 Eli Lilly and Co (XSWX:LLY), the current Sloan Ratio % is 14.20% 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 Eli Lilly and Co (XSWX:LLY) Overvalued in 2026?
Based on GuruFocus' analysis, Eli Lilly and Co stock appears to be undervalued.
The current stock price of CHF965.00 is trading 14.8% below its estimated GF Value™ of CHF1,133.11.
GuruFocus considers Eli Lilly and Co to be Modestly Undervalued.
Key valuation signals for XSWX:LLY:
Sloan Ratio %: 14.20%
GF Value™: CHF1,133.11 vs. price of CHF965.00 (14.8% below fair value)
No single metric tells the full story. See the XSWX:LLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio and Jaypirca for cancer; Mounjaro, Zepbound, Foundayo, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic; and Taltz and Olumiant for immunology.
99GF Score
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