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.
Vertiv Holdings Co's Sloan Ratio for the quarter that ended in Mar. 2026 was 6.12%.
As of Mar. 2026, Vertiv Holdings Co has a Sloan Ratio of 6.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Vertiv Holdings Co (XSWX:VRT) 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, Vertiv Holdings Co has a Sloan Ratio of 6.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Vertiv Holdings Co Sloan Ratio % Related Terms
Vertiv Holdings Co Sloan Ratio % Historical Data
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The historical data trend for Vertiv Holdings 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.
For the Electrical Equipment & Parts subindustry, Vertiv Holdings 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.
Vertiv Holdings Co Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Vertiv Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vertiv Holdings 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.
Vertiv Holdings Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Vertiv Holdings Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 324.2 (Jun. 2025 ) + 398.5 (Sep. 2025 ) + 445.6 (Dec. 2025 ) + 390.1 (Mar. 2026 ) = CHF1,558 Mil.
Vertiv Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 322.9 (Jun. 2025 ) + 508.7 (Sep. 2025 ) + 978.9 (Dec. 2025 ) + 766.8 (Mar. 2026 ) = CHF2,577 Mil.
Vertiv Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -144 (Jun. 2025 ) + -709.9 (Sep. 2025 ) + -608.1 (Dec. 2025 ) + -376.7 (Mar. 2026 ) = CHF-1,839 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.
Vertiv Holdings Co (XSWX:VRT) has a Sloan Ratio % of 6.12% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Vertiv Holdings Co and its competitors.
Is Vertiv Holdings Co's Sloan Ratio % too high?
Vertiv Holdings Co's current Sloan Ratio % is 6.12%. Overall, Vertiv Holdings Co has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Vertiv Holdings Co's Sloan Ratio % compare to ?
Vertiv Holdings Co's Sloan Ratio % of 6.12% can be compared against companies in the Industrial Products 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 Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products 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 Vertiv Holdings Co and its competitors. Vertiv Holdings Co's current Sloan Ratio % is 6.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertiv Holdings Co stock overvalued right now?
Vertiv Holdings Co (XSWX:VRT) has a current Sloan Ratio % of 6.12%. The stock's GF Value™ is CHF132.39, compared to a current price of CHF245.15 — trading 85.2% above its estimated fair value. The current Sloan Ratio % is 6.12%. Vertiv Holdings Co's overall GF Score™ is 80/100. 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 Vertiv Holdings Co (XSWX:VRT), the current Sloan Ratio % is 6.12% 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 Vertiv Holdings Co (XSWX:VRT) Overvalued in 2026?
Based on GuruFocus' analysis, Vertiv Holdings Co stock appears to be overvalued.
The current stock price of CHF245.15 is trading 85.2% above its estimated GF Value™ of CHF132.39.
Key valuation signals for XSWX:VRT:
Sloan Ratio %: 6.12%
GF Value™: CHF132.39 vs. price of CHF245.15 (85.2% above fair value)
No single metric tells the full story. See the XSWX:VRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vertiv has roots tracing back to 1946 when its founder, Ralph Liebert, developed an air-cooling system for mainframe data rooms. As computers started making their way into commercial applications in 1965, Liebert developed one of the first computer room air conditioning, or CRAC, units, enabling the precise control of temperature and humidity. The firm has slowly expanded its data center portfolio through internal product development and the acquisition of thermal and power management products like condensers, busways, and switches. Vertiv has global operations today; its products can be found in data centers in most regions throughout the world.
80GF Score
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