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Ryder System Inc (NYSE:R)
Beneish M-Score
-3.15 (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 -3.14 suggests that the company is not a manipulator.

R' s 10-Year Beneish M-Score Range
Min: -3.88   Max: 6.17
Current: -3.15

-3.88
6.17

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 6.17. The lowest was -3.88. And the median was -3.03.


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 * 1.0011+0.528 * 0.9328+0.404 * 0.9189+0.892 * 1.004+0.115 * 1.0503
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0575+4.679 * -0.1258-0.327 * 1.0256
=-3.14

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $831 Mil.
Revenue was 1662.931 + 1567.153 + 1656.316 + 1687.15 = $6,574 Mil.
Gross Profit was 385.959 + 329.36 + 369.695 + 361.806 = $1,447 Mil.
Total Current Assets was $1,136 Mil.
Total Assets was $10,638 Mil.
Property, Plant and Equipment(Net PPE) was $8,562 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,125 Mil.
Selling, General & Admin. Expense(SGA) was $846 Mil.
Total Current Liabilities was $1,524 Mil.
Long-Term Debt was $4,869 Mil.
Net Income was 85.159 + 52.916 + 11.296 + 83.689 = $233 Mil.
Non Operating Income was 34.265 + 32.216 + 18.387 + 0.996 = $86 Mil.
Cash Flow from Operations was 380.82 + 277.878 + 395.335 + 431.768 = $1,486 Mil.
Accounts Receivable was $827 Mil.
Revenue was 1684.571 + 1610.737 + 1617.729 + 1634.54 = $6,548 Mil.
Gross Profit was 348.062 + 304.26 + 344.802 + 347.078 = $1,344 Mil.
Total Current Assets was $1,137 Mil.
Total Assets was $9,688 Mil.
Property, Plant and Equipment(Net PPE) was $7,618 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,058 Mil.
Selling, General & Admin. Expense(SGA) was $797 Mil.
Total Current Liabilities was $1,517 Mil.
Long-Term Debt was $4,159 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)
=(831.441 / 6573.55) / (827.274 / 6547.577)
=0.1264828 / 0.12634811
=1.0011

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)
=(329.36 / 6547.577) / (385.959 / 6573.55)
=0.20529762 / 0.22009721
=0.9328

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 - (1135.916 + 8561.923) / 10638.264) / (1 - (1137.47 + 7618.179) / 9687.667)
=0.08840023 / 0.09620665
=0.9189

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
=6573.55 / 6547.577
=1.004

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))
=(1058.098 / (1058.098 + 7618.179)) / (1124.714 / (1124.714 + 8561.923))
=0.121953 / 0.11610985
=1.0503

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)
=(846.316 / 6573.55) / (797.158 / 6547.577)
=0.12874565 / 0.12174855
=1.0575

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)
=((4869.208 + 1523.732) / 10638.264) / ((4159.472 + 1516.68) / 9687.667)
=0.60093827 / 0.58591527
=1.0256

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
=(233.06 - 85.864 - 1485.801) / 10638.264
=-0.1258

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 -3.14 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 1.00480.91720.82431.15660.97750.91320.98030.98870.9851
GMI 001.16840.93181.11892.30281.02680.97230.9888
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 0.91831.65660.64761.1150.96350.49910.96131.00520.9991
LVGI 1.04810.94871.02950.92741.04461.08111.01070.9981.0198
TATA -0.09-0.1239-0.1344-0.1223-0.1354-0.1144-0.1107-0.11-0.1221
M-score -3.36-3.70-3.19-3.07-2.96-2.21-2.98-3.02-3.07

Ryder System Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.96210.95590.99060.98871.03131.03460.99580.98510.92841.0011
GMI 0.72370.4270.1230.9740.97960.98790.9910.98850.96250.9328
AQI 0.98830.95760.95780.93140.93550.93240.94510.92970.940.9189
SGI 1.01981.0181.02741.02591.02921.03541.03371.03421.01981.004
DEPI 0.98831.02361.04231.07761.08791.07421.03731.00561.01061.0503
SGAI 1.24251.78813.42211.00241.00981.00240.99770.99911.02921.0575
LVGI 0.97160.97360.97350.9981.01741.03371.02071.01981.01551.0256
TATA -0.1159-0.1152-0.1148-0.1109-0.1094-0.1074-0.1189-0.1286-0.129-0.1258
M-score -3.22-3.49-3.88-3.02-2.97-2.96-3.04-3.11-3.18-3.14
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