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.
Hub Group's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.12%.
As of Mar. 2024, Hub Group has a Sloan Ratio of 3.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Hub Group Sloan Ratio % Historical Data
The historical data trend for Hub Group'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.
Competitive Comparison of Hub Group's Sloan Ratio %
For the Integrated Freight & Logistics subindustry, Hub Group'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.
Hub Group's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Hub Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hub Group's Sloan Ratio % falls into.
Hub Group Sloan Ratio % Calculation
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.
Hub Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hub Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 46.505 (Jun. 2023 ) + 30.459 (Sep. 2023 ) + 28.785 (Dec. 2023 ) + 27.053 (Mar. 2024 ) = $133 Mil.
Hub Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 132.006 (Jun. 2023 ) + 101.296 (Sep. 2023 ) + 99.481 (Dec. 2023 ) + 80.516 (Mar. 2024 ) = $413 Mil.
Hub Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -33.827 (Jun. 2023 ) + -34.959 (Sep. 2023 ) + -287.81 (Dec. 2023 ) + -14.082 (Mar. 2024 ) = $-371 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.
Hub Group (NAS:HUBG) 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. 2024, Hub Group has a Sloan Ratio of 3.12%, indicating the company is in the safe zone and there is no funny business with accruals.
Hub Group Sloan Ratio % Related Terms
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Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Asset light truckload and LTL brokerage makes up around 20%. The remaining 20% reflects Hub's logistics division, which provides outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, logistics, and dedicated truckload offerings.
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