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Ryder System Inc (NYSE:R)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

R' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: 3.34
Current: -3.04

-3.73
3.34

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 3.34. The lowest was -3.73. 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 * 1.0506+0.528 * 0.9451+0.404 * 0.9421+0.892 * 1.0059+0.115 * 1.0314
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0147+4.679 * -0.1192-0.327 * 1.0135
=-3.04

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $823 Mil.
Revenue was 1629.672 + 1672.743 + 1669.066 + 1662.931 = $6,634 Mil.
Gross Profit was 346.567 + 386.774 + 382.599 + 385.959 = $1,502 Mil.
Total Current Assets was $1,095 Mil.
Total Assets was $11,055 Mil.
Property, Plant and Equipment(Net PPE) was $8,993 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,231 Mil.
Selling, General & Admin. Expense(SGA) was $849 Mil.
Total Current Liabilities was $1,594 Mil.
Long-Term Debt was $4,987 Mil.
Net Income was 55.794 + 76.201 + 90.619 + 85.159 = $308 Mil.
Non Operating Income was 21.394 + 16.593 + 30.666 + 34.265 = $103 Mil.
Cash Flow from Operations was 365.009 + 370.452 + 412.638 + 374.853 = $1,523 Mil.
Accounts Receivable was $778 Mil.
Revenue was 1567.153 + 1656.316 + 1687.15 + 1684.571 = $6,595 Mil.
Gross Profit was 330.112 + 370.449 + 362.492 + 348.062 = $1,411 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 $1,122 Mil.
Selling, General & Admin. Expense(SGA) was $832 Mil.
Total Current Liabilities was $1,127 Mil.
Long-Term Debt was $4,693 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)
=(822.556 / 6634.412) / (778.28 / 6595.19)
=0.12398326 / 0.11800721
=1.0506

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)
=(1411.115 / 6595.19) / (1501.899 / 6634.412)
=0.21396124 / 0.22638012
=0.9451

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 - (1094.546 + 8992.537) / 11054.53) / (1 - (1078.019 + 7908.463) / 9906.791)
=0.08751589 / 0.09289678
=0.9421

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
=6634.412 / 6595.19
=1.0059

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))
=(1121.759 / (1121.759 + 7908.463)) / (1231.317 / (1231.317 + 8992.537))
=0.12422275 / 0.1204357
=1.0314

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)
=(849.105 / 6634.412) / (831.878 / 6595.19)
=0.12798497 / 0.12613405
=1.0147

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)
=((4987.217 + 1593.54) / 11054.53) / ((4692.503 + 1126.537) / 9906.791)
=0.59529957 / 0.5873789
=1.0135

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
=(307.773 - 102.918 - 1522.952) / 11054.53
=-0.1192

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 -3.04 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.97980.91720.79710.98531.03181.19780.85950.98870.98511.0331
GMI 1.3310.99190.81720.99041.11962.2431.02680.97230.98880.9219
AQI 0.83921.09191.03711.13241.17610.91030.96220.93140.91320.9617
SGI 1.09861.04110.94480.78781.0511.1781.03411.02591.03420.9899
DEPI 1.14090.93960.96280.88861.06171.11141.0321.07761.02941.0103
SGAI 1.00780.96941.32320.88520.96620.52440.96131.00520.99911.0442
LVGI 1.04580.94871.02950.92741.04461.08111.01070.9981.03951.0155
TATA 0.0442-0.1171-0.1813-0.1454-0.1549-0.1234-0.1219-0.11-0.1199-0.114
M-score -2.09-3.02-3.72-3.28-3.00-2.03-3.14-3.02-3.07-3.06

Ryder System Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.98871.03131.03460.99580.98510.92841.00110.99791.03311.0506
GMI 0.97060.97530.98270.98330.98530.95980.9310.91980.92320.9451
AQI 0.93140.93550.93240.94510.91320.940.91890.90340.96170.9421
SGI 1.02591.02921.03541.03371.03421.01981.0040.99320.98991.0059
DEPI 1.05361.0641.05121.00631.03821.0161.05871.08231.02461.0314
SGAI 1.00921.01731.01041.00160.99911.02821.05541.06131.04421.0147
LVGI 0.9981.01741.03371.02071.03951.01551.02561.0471.01551.0135
TATA -0.1237-0.1213-0.1186-0.1332-0.1224-0.1254-0.122-0.1165-0.1138-0.1192
M-score -3.08-3.03-3.01-3.11-3.09-3.17-3.13-3.13-3.06-3.04
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