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Ryder System Inc (NYSE:R)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

R' s 10-Year Beneish M-Score Range
Min: -4.25   Max: 6.17
Current: -3

-4.25
6.17

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 6.17. The lowest was -4.25. And the median was -2.99.


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 * 0.9958+0.528 * 0.9913+0.404 * 0.9451+0.892 * 1.0337+0.115 * 1.0373
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9977+4.679 * -0.1114-0.327 * 1.0207
=-3.00

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $821 Mil.
Revenue was 1687.15 + 1684.571 + 1610.737 + 1617.729 = $6,600 Mil.
Gross Profit was 361.806 + 347.591 + 304.26 + 344.802 = $1,358 Mil.
Total Current Assets was $1,122 Mil.
Total Assets was $9,604 Mil.
Property, Plant and Equipment(Net PPE) was $7,545 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,069 Mil.
Selling, General & Admin. Expense(SGA) was $804 Mil.
Total Current Liabilities was $1,476 Mil.
Long-Term Debt was $4,045 Mil.
Net Income was 83.689 + 75.358 + 48.232 + 64.607 = $272 Mil.
Non Operating Income was 0.996 + -4.828 + 5.382 + 27.732 = $29 Mil.
Cash Flow from Operations was 438.156 + 298.84 + 237.66 + 337.41 = $1,312 Mil.
Accounts Receivable was $798 Mil.
Revenue was 1634.54 + 1603.999 + 1563.017 + 1583.536 = $6,385 Mil.
Gross Profit was 347.078 + 333.624 + 297.167 + 324.914 = $1,303 Mil.
Total Current Assets was $1,099 Mil.
Total Assets was $8,808 Mil.
Property, Plant and Equipment(Net PPE) was $6,799 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,004 Mil.
Selling, General & Admin. Expense(SGA) was $780 Mil.
Total Current Liabilities was $1,274 Mil.
Long-Term Debt was $3,686 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)
=(821.446 / 6600.187) / (798.066 / 6385.092)
=0.12445799 / 0.12498896
=0.9958

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)
=(347.591 / 6385.092) / (361.806 / 6600.187)
=0.20403512 / 0.20582129
=0.9913

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 - (1122.362 + 7544.881) / 9604.362) / (1 - (1099.491 + 6799.007) / 8807.802)
=0.09757223 / 0.10323847
=0.9451

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
=6600.187 / 6385.092
=1.0337

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))
=(1004.216 / (1004.216 + 6799.007)) / (1068.576 / (1068.576 + 7544.881))
=0.12869246 / 0.1240589
=1.0373

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)
=(803.941 / 6600.187) / (779.55 / 6385.092)
=0.12180579 / 0.12208908
=0.9977

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)
=((4045.245 + 1475.573) / 9604.362) / ((3686.038 + 1274.267) / 8807.802)
=0.57482402 / 0.56317172
=1.0207

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
=(271.886 - 29.282 - 1312.066) / 9604.362
=-0.1114

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 -3.00 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.06641.00480.97980.81990.89171.1960.97750.91321.13390.8548
GMI 0.99750.81241.3310.99190.81720.96531.11892.30281.02680.9723
AQI 0.90660.91780.83921.09191.04781.12091.17610.91030.96220.9314
SGI 1.07251.11471.09861.04110.94480.78781.0511.1781.03411.0259
DEPI 0.95661.04281.14090.93960.96280.88861.06171.11141.0321.0776
SGAI 0.9250.91831.00780.96941.32320.93260.96350.49910.96131.0052
LVGI 1.05681.03971.04580.94871.02950.92741.04461.08111.01070.998
TATA -0.1168-0.09-0.0868-0.1215-0.1578-0.1223-0.1354-0.1144-0.1107-0.11
M-score -2.95-2.92-2.71-3.13-3.51-3.01-2.96-2.21-2.84-3.14

Ryder System Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9450.96841.13390.96210.95590.99060.85481.03131.03460.9958
GMI 5.291218.02841.02510.72370.4270.1230.9740.97960.98830.9913
AQI 0.90290.89960.96220.98830.95760.95780.93140.93550.93240.9451
SGI 1.11541.06731.03411.01981.0181.02741.02591.02921.03541.0337
DEPI 1.03351.04841.0320.98831.02361.04231.07761.08791.07971.0373
SGAI 0.27030.1430.9641.24251.78813.42211.00241.00981.00240.9977
LVGI 1.04861.0491.01070.97160.97360.97350.9981.01741.03371.0207
TATA -0.1055-0.0999-0.11-0.1159-0.1152-0.1148-0.1109-0.1063-0.0992-0.1114
M-score -0.586.17-2.84-3.22-3.49-3.88-3.14-2.96-2.92-3.00
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