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ZTO Express (Cayman) (ZTO Express (Cayman)) ROC (Joel Greenblatt) %

: 36.11% (As of Dec. 2023)
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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. ZTO Express (Cayman)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 36.11%.

The historical rank and industry rank for ZTO Express (Cayman)'s ROC (Joel Greenblatt) % or its related term are showing as below:

ZTO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.21   Med: 62.53   Max: 130.16
Current: 34.71

During the past 10 years, ZTO Express (Cayman)'s highest ROC (Joel Greenblatt) % was 130.16%. The lowest was 26.21%. And the median was 62.53%.

ZTO's ROC (Joel Greenblatt) % is ranked better than
83.73% of 971 companies
in the Transportation industry
Industry Median: 12.61 vs ZTO: 34.71

ZTO Express (Cayman)'s 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -14.90% per year.


ZTO Express (Cayman) ROC (Joel Greenblatt) % Historical Data

The historical data trend for ZTO Express (Cayman)'s ROC (Joel Greenblatt) % 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.

* Premium members only.

ZTO Express (Cayman) Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.85 31.78 26.21 29.29 34.75

ZTO Express (Cayman) Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.74 29.23 40.04 33.25 36.11

Competitive Comparison

For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'s ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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) ROC (Joel Greenblatt) % Distribution

For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where ZTO Express (Cayman)'s ROC (Joel Greenblatt) % falls into.



ZTO Express (Cayman) ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(226.999 + 3.781 + 734.077) - (383.887 + 218.72 + 945.806)
=-583.556

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(239.209 + 3.932 + 341.953) - (1068.759 + 244.493 + 382.631)
=-1110.789

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of ZTO Express (Cayman) for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1635.032/( ( (4455.499 + max(-583.556, 0)) + (4601.162 + max(-1110.789, 0)) )/ 2 )
=1635.032/( ( 4455.499 + 4601.162 )/ 2 )
=1635.032/4528.3305
=36.11 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT 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.


ZTO Express (Cayman)  (NYSE:ZTO) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


ZTO Express (Cayman) ROC (Joel Greenblatt) % Related Terms

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ZTO Express (Cayman) (ZTO Express (Cayman)) Business Description

Address
No. 1685 Huazhi Road, Building One, Qingpu District, Shanghai, CHN, 201708
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.