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.
Expeditors International of Washington's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.77%.
As of Dec. 2023, Expeditors International of Washington has a Sloan Ratio of -5.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Expeditors International of Washington Sloan Ratio % Historical Data
The historical data trend for Expeditors International of Washington'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.
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Expeditors International of Washington Annual Data
For the Integrated Freight & Logistics subindustry, Expeditors International of Washington'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.
Expeditors International of Washington Sloan Ratio % Distribution
For the Transportation industry and Industrials sector, Expeditors International of Washington's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Expeditors International of Washington's Sloan Ratio % falls into.
Expeditors International of Washington 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.
Expeditors International of Washington's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Expeditors International of Washington's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 226.011 (Mar. 2023 ) + 196.8 (Jun. 2023 ) + 171.353 (Sep. 2023 ) + 158.719 (Dec. 2023 ) = $753 Mil.
Expeditors International of Washington's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 546.412 (Mar. 2023 ) + 158.446 (Jun. 2023 ) + 189.98 (Sep. 2023 ) + 158.353 (Dec. 2023 ) = $1,053 Mil.
Expeditors International of Washington's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.551 (Mar. 2023 ) + -11.275 (Jun. 2023 ) + -7.983 (Sep. 2023 ) + -10.624 (Dec. 2023 ) = $-39 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.
Expeditors International of Washington (NYSE:EXPD) 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, Expeditors International of Washington has a Sloan Ratio of -5.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Expeditors International of Washington Sloan Ratio % Related Terms
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Expeditors International of Washington (Expeditors International of Washington) Business Description
Expeditors International of Washington is a non-asset-based third-party logistics provider, mainly focused on international freight forwarding. Its offers freight consolidation and forwarding, customs brokerage, warehousing and distribution, purchase order management, vendor consolidation, and numerous other value-added logistics services. It employs sophisticated IT systems and contracts with airlines and ocean carriers to move customers' freight across the globe. The firm operates more than 200 full-service office locations worldwide, in addition to numerous satellite locations. In 2022, Expeditors derived 34% of consolidated net revenue from airfreight, 30% from ocean freight, and 36% from customs brokerage and other services.
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