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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.
Texas Instruments's Sloan Ratio for the quarter that ended in Jun. 2026 was 1.37%.
As of Jun. 2026, Texas Instruments has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Texas Instruments (XSWX:TXN) 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 Jun. 2026, Texas Instruments has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Texas Instruments Sloan Ratio % Related Terms
Texas Instruments Sloan Ratio % Historical Data
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The historical data trend for Texas Instruments'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:TXN vs ADI, QCOM, MRVL: Sloan Ratio % Comparison
For the Semiconductors subindustry, Texas Instruments'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.
Texas Instruments Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Texas Instruments'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.
Texas Instruments's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Texas Instruments's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 1085.88 (Sep. 2025 ) + 926.795 (Dec. 2025 ) + 1216.379 (Mar. 2026 ) + 1582.614 (Jun. 2026 ) = CHF4,812 Mil.
Texas Instruments's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 1743.459 (Sep. 2025 ) + 1796.213 (Dec. 2025 ) + 1196.696 (Mar. 2026 ) + 2160.508 (Jun. 2026 ) = CHF6,897 Mil.
Texas Instruments's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -542.144 (Sep. 2025 ) + -538.704 (Dec. 2025 ) + -37.003 (Mar. 2026 ) + -1360.409 (Jun. 2026 ) = CHF-2,478 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.
Texas Instruments (XSWX:TXN) has a Sloan Ratio % of 1.37% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Texas Instruments and its competitors.
Is Texas Instruments' Sloan Ratio % too high?
Texas Instruments' current Sloan Ratio % is 1.37%. Overall, Texas Instruments has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' Sloan Ratio % compare to ADI and QCOM?
Texas Instruments' Sloan Ratio % of 1.37% 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 Texas Instruments and its competitors. Texas Instruments's current Sloan Ratio % is 1.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Texas Instruments (XSWX:TXN) has a current Sloan Ratio % of 1.37%. The stock's GF Value™ is CHF182.40, compared to a current price of CHF226.40 — trading 24.1% above its estimated fair value. The current Sloan Ratio % is 1.37%. Texas Instruments' overall GF Score™ is 86/100 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 Texas Instruments (XSWX:TXN), the current Sloan Ratio % is 1.37% as of Jun. 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 Texas Instruments (XSWX:TXN) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued.
The current stock price of CHF226.40 is trading 24.1% above its estimated GF Value™ of CHF182.40.
Key valuation signals for XSWX:TXN:
Sloan Ratio %: 1.37%
GF Value™: CHF182.40 vs. price of CHF226.40 (24.1% above fair value)
No single metric tells the full story. See the XSWX:TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
86GF Score
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