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.
ZTO Express (Cayman)'s Sloan Ratio for the quarter that ended in Dec. 2023 was 8.74%.
As of Dec. 2023, ZTO Express (Cayman) has a Sloan Ratio of 8.74%, indicating the company is in the safe zone and there is no funny business with accruals.
ZTO Express (Cayman) Sloan Ratio % Historical Data
The historical data trend for ZTO Express (Cayman)'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 ZTO Express (Cayman)'s Sloan Ratio %
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'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.
ZTO Express (Cayman)'s Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'s Sloan Ratio % falls into.
ZTO Express (Cayman) 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.
ZTO Express (Cayman)'s Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
ZTO Express (Cayman)'s Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 242.397 (Mar. 2023 ) + 354.847 (Jun. 2023 ) + 321.347 (Sep. 2023 ) + 307.037 (Dec. 2023 ) = $1,226 Mil.
ZTO Express (Cayman)'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 397.332 (Mar. 2023 ) + 525.261 (Jun. 2023 ) + 402.596 (Sep. 2023 ) + 549.464 (Dec. 2023 ) = $1,875 Mil.
ZTO Express (Cayman)'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -851.355 (Mar. 2023 ) + -494.534 (Jun. 2023 ) + -551.633 (Sep. 2023 ) + 165.425 (Dec. 2023 ) = $-1,732 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.
ZTO Express (Cayman) (NYSE:ZTO) 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 Dec. 2023, ZTO Express (Cayman) has a Sloan Ratio of 8.74%, indicating the company is in the safe zone and there is no funny business with accruals.
ZTO Express (Cayman) Sloan Ratio % Related Terms
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ZTO Express (Cayman) (ZTO Express (Cayman)) Business Description
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 22.1% in 2022. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains the Chairman, CEO, and its major shareholder with 77% voting rights as of June 30, 2023. ZTO's strategic shareholder is leading China e-commerce company, Alibaba Group, with around an 11.7% interest.
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