Switch to:
Ryder System Inc (NYSE:R)
Beneish M-Score
-3.17 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Ryder System Inc has a M-score of -3.17 suggests that the company is not a manipulator.

R' s 10-Year Beneish M-Score Range
Min: -3.75   Max: 3.4
Current: -3.17

-3.75
3.4

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 3.40. The lowest was -3.75. And the median was -3.04.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Ryder System Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9284+0.528 * 0.9591+0.404 * 0.94+0.892 * 1.0198+0.115 * 1.0106
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0282+4.679 * -0.1245-0.327 * 1.0155
=-3.17

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $778 Mil.
Revenue was 1567.153 + 1656.316 + 1687.15 + 1684.571 = $6,595 Mil.
Gross Profit was 329.36 + 369.695 + 361.806 + 347.591 = $1,408 Mil.
Total Current Assets was $1,078 Mil.
Total Assets was $9,907 Mil.
Property, Plant and Equipment(Net PPE) was $7,908 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,100 Mil.
Selling, General & Admin. Expense(SGA) was $832 Mil.
Total Current Liabilities was $1,127 Mil.
Long-Term Debt was $4,693 Mil.
Net Income was 52.916 + 11.296 + 83.689 + 75.358 = $223 Mil.
Non Operating Income was 32.216 + 18.387 + 0.996 + -4.828 = $47 Mil.
Cash Flow from Operations was 277.878 + 395.335 + 438.156 + 298.84 = $1,410 Mil.
Accounts Receivable was $822 Mil.
Revenue was 1610.737 + 1617.729 + 1634.54 + 1603.999 = $6,467 Mil.
Gross Profit was 304.26 + 342.275 + 345.681 + 332.4 = $1,325 Mil.
Total Current Assets was $1,117 Mil.
Total Assets was $9,367 Mil.
Property, Plant and Equipment(Net PPE) was $7,325 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,031 Mil.
Selling, General & Admin. Expense(SGA) was $793 Mil.
Total Current Liabilities was $1,373 Mil.
Long-Term Debt was $4,046 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(778.28 / 6595.19) / (822.01 / 6467.005)
=0.11800721 / 0.1271083
=0.9284

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(369.695 / 6467.005) / (329.36 / 6595.19)
=0.20482681 / 0.21355746
=0.9591

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1078.019 + 7908.463) / 9906.791) / (1 - (1117.116 + 7324.608) / 9367.483)
=0.09289678 / 0.09882687
=0.94

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6595.19 / 6467.005
=1.0198

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1031.469 / (1031.469 + 7324.608)) / (1100.322 / (1100.322 + 7908.463))
=0.12343938 / 0.12213878
=1.0106

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(831.878 / 6595.19) / (793.31 / 6467.005)
=0.12613405 / 0.12267039
=1.0282

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4692.503 + 1126.537) / 9906.791) / ((4045.751 + 1372.622) / 9367.483)
=0.5873789 / 0.57842357
=1.0155

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(223.259 - 46.771 - 1410.209) / 9906.791
=-0.1245

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Ryder System Inc has a M-score of -3.17 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ryder System Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00480.91720.82431.15660.97751.04170.85950.98870.9851
GMI 001.16840.98172.4151.01271.02680.97690.9841
AQI 0.92521.09191.03711.13241.17610.91030.96220.93140.9297
SGI 1.11471.04110.91370.81471.0511.1781.03411.02591.0342
DEPI 0.98630.90980.99520.87341.06171.11141.0321.07761.0056
SGAI 0.91831.65660.64761.1150.48140.9990.96131.00520.9991
LVGI 1.04810.94871.02950.92741.04461.08111.01070.9981.0198
TATA -0.09-0.1239-0.1344-0.1433-0.1354-0.1144-0.1115-0.1188-0.1221
M-score -3.36-3.70-3.19-3.14-2.19-2.86-3.09-3.05-3.08

Ryder System Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.85950.96210.95590.99060.98871.03131.03460.99580.98510.9284
GMI 1.02681.01761.00130.99290.97690.98170.98930.99030.98410.9591
AQI 0.96220.98830.95760.95780.93140.93550.93240.94510.92970.94
SGI 1.03411.01981.0181.02741.02591.02921.03541.03371.03421.0198
DEPI 1.0320.98131.02361.04231.07761.08791.07971.03731.00561.0106
SGAI 0.96130.94060.95640.98421.00521.01321.00640.99770.99911.0282
LVGI 1.01070.97160.97360.97350.9981.01741.03371.02071.01981.0155
TATA -0.1113-0.1177-0.1165-0.1181-0.118-0.1158-0.1088-0.1198-0.124-0.1245
M-score -3.09-3.03-3.05-3.02-3.05-3.00-2.96-3.04-3.09-3.17
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK