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.
As of Mar. 2024, JB Hunt Transport Services has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
JB Hunt Transport Services Sloan Ratio % Historical Data
* 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 JB Hunt Transport Services's Sloan Ratio %
For the Integrated Freight & Logistics subindustry, JB Hunt Transport Services'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.
JB Hunt Transport Services's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, JB Hunt Transport Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JB Hunt Transport Services's Sloan Ratio % falls into.
JB Hunt Transport Services 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.
JB Hunt Transport Services's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 189.552 (Jun. 2023 ) + 187.431 (Sep. 2023 ) + 153.535 (Dec. 2023 ) + 127.493 (Mar. 2024 ) = $658 Mil.
JB Hunt Transport Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 609.669 (Jun. 2023 ) + 432.322 (Sep. 2023 ) + 215.006 (Dec. 2023 ) + 466.467 (Mar. 2024 ) = $1,723 Mil.
JB Hunt Transport Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -473.947 (Jun. 2023 ) + -551.127 (Sep. 2023 ) + -280.31 (Dec. 2023 ) + 0 (Mar. 2024 ) = $-1,305 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.
JB Hunt Transport Services (NAS:JBHT) 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, JB Hunt Transport Services has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
JB Hunt Transport Services Sloan Ratio % Related Terms
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JB Hunt Transport Services (JB Hunt Transport Services) Business Description
J.B. Hunt Transport Services ranks among the top surface transportation companies in North America by revenue. Its primary operating segments are intermodal delivery, which uses the Class I rail carriers for the underlying line-haul movement of its owned containers (48% of sales in 2023); dedicated trucking services that provide customer-specific fleet needs (28%); for-hire truckload (6%); heavy goods final-mile delivery (7%), and asset-light truck brokerage (11%).
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