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Ryder System Inc (NYSE:R)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ryder System Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

R' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 7

4
9

During the past 13 years, the highest Piotroski F-Score of Ryder System Inc was 9. The lowest was 4. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 76.201 + 55.794 + 73.75 + 84.752 = $290 Mil.
Cash Flow from Operations was 370.452 + 365.009 + 397.663 + 422.072 = $1,555 Mil.
Revenue was 1672.743 + 1629.672 + 1703.744 + 1724.418 = $6,731 Mil.
Gross Profit was 386.774 + 346.567 + 386.835 + 390.82 = $1,511 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(10820.186 + 10967.809 + 11054.53 + 11136.127 + 11108.773) / 5 = $11017.485 Mil.
Total Assets at the begining of this year (Sep15) was $10,820 Mil.
Long-Term Debt was $4,464 Mil.
Total Current Assets was $1,138 Mil.
Total Current Liabilities was $2,030 Mil.
Net Income was 11.296 + 52.916 + 85.159 + 90.619 = $240 Mil.

Revenue was 1656.316 + 1567.153 + 1662.931 + 1669.066 = $6,555 Mil.
Gross Profit was 369.695 + 329.36 + 385.959 + 382.599 = $1,468 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(9604.362 + 9675.986 + 9906.791 + 10638.264 + 10820.186) / 5 = $10129.1178 Mil.
Total Assets at the begining of last year (Sep14) was $9,604 Mil.
Long-Term Debt was $5,145 Mil.
Total Current Assets was $1,118 Mil.
Total Current Liabilities was $1,367 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ryder System Inc's current net income (TTM) was 290. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ryder System Inc's current cash flow from operations (TTM) was 1,555. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Sep15)
=290.497/10820.186
=0.02684769

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=239.99/9604.362
=0.0249876

Ryder System Inc's return on assets of this year was 0.02684769. Ryder System Inc's return on assets of last year was 0.0249876. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Ryder System Inc's current net income (TTM) was 290. Ryder System Inc's current cash flow from operations (TTM) was 1,555. ==> 1,555 > 290 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=4464.495/11017.485
=0.40521907

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=5144.938/10129.1178
=0.50793545

Ryder System Inc's gearing of this year was 0.40521907. Ryder System Inc's gearing of last year was 0.50793545. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep16)=Total Current Assets/Total Current Liabilities
=1137.559/2029.851
=0.56041503

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=1117.527/1367.262
=0.81734664

Ryder System Inc's current ratio of this year was 0.56041503. Ryder System Inc's current ratio of last year was 0.81734664. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Ryder System Inc's number of shares in issue this year was 53.3. Ryder System Inc's number of shares in issue last year was 53.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1510.996/6730.577
=0.22449725

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1467.613/6555.466
=0.22387623

Ryder System Inc's gross margin of this year was 0.22449725. Ryder System Inc's gross margin of last year was 0.22387623. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep15)
=6730.577/10820.186
=0.62203894

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=6555.466/9604.362
=0.68255091

Ryder System Inc's asset turnover of this year was 0.62203894. Ryder System Inc's asset turnover of last year was 0.68255091. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ryder System Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Ryder System Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1000111101
Question 4 1111111111
Question 5 0111001001
Question 6 1101010110
Question 7 1111111000
Question 8 1001100111
Question 9 1000110000
F-score 8657776656

Ryder System Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 1100001111
Question 4 1111111111
Question 5 0100001111
Question 6 0011010000
Question 7 0001000001
Question 8 1111111111
Question 9 0000000000
F-score 5656456667
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