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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 * 1.0073+0.528 * 0.9791+0.404 * 0.9841+0.892 * 1.0155+0.115 * 0.9624
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9968+4.679 * -0.1199-0.327 * 0.987
=-3.04

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $851 Mil.
Revenue was 1703.744 + 1629.672 + 1672.743 + 1669.066 = $6,675 Mil.
Gross Profit was 386.835 + 346.567 + 386.774 + 382.599 = $1,503 Mil.
Total Current Assets was $1,126 Mil.
Total Assets was $11,136 Mil.
Property, Plant and Equipment(Net PPE) was $9,041 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,254 Mil.
Selling, General & Admin. Expense(SGA) was $857 Mil.
Total Current Liabilities was $2,018 Mil.
Long-Term Debt was $4,587 Mil.
Net Income was 73.75 + 55.794 + 76.201 + 90.619 = $296 Mil.
Non Operating Income was 17.456 + 21.394 + 16.593 + 30.666 = $86 Mil.
Cash Flow from Operations was 397.663 + 365.009 + 370.452 + 412.638 = $1,546 Mil.
Accounts Receivable was $831 Mil.
Revenue was 1662.931 + 1567.153 + 1656.316 + 1687.15 = $6,574 Mil.
Gross Profit was 385.959 + 330.112 + 370.449 + 362.492 = $1,449 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 $1,137 Mil.
Selling, General & Admin. Expense(SGA) was $846 Mil.
Total Current Liabilities was $1,524 Mil.
Long-Term Debt was $4,869 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)
=(850.504 / 6675.225) / (831.441 / 6573.55)
=0.12741203 / 0.1264828
=1.0073

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)
=(1449.012 / 6573.55) / (1502.775 / 6675.225)
=0.22043067 / 0.22512724
=0.9791

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 - (1126.248 + 9041.13) / 11136.127) / (1 - (1135.916 + 8561.923) / 10638.264)
=0.08699155 / 0.08840023
=0.9841

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
=6675.225 / 6573.55
=1.0155

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))
=(1136.645 / (1136.645 + 8561.923)) / (1253.729 / (1253.729 + 9041.13))
=0.1171972 / 0.12178205
=0.9624

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)
=(856.685 / 6675.225) / (846.316 / 6573.55)
=0.128338 / 0.12874565
=0.9968

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)
=((4586.806 + 2018.06) / 11136.127) / ((4869.208 + 1523.732) / 10638.264)
=0.59310261 / 0.60093827
=0.987

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
=(296.364 - 86.109 - 1545.762) / 11136.127
=-0.1199

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 0.97980.91720.82430.95281.03181.19780.85950.98870.98511.0331
GMI 1.01970.71861.20010.98212.35041.01271.03090.97060.9850.9235
AQI 0.83921.09191.03711.13241.17610.91030.96220.93140.91320.9617
SGI 1.09861.04110.91370.81471.0511.1781.03411.02591.03420.9899
DEPI 1.15570.90980.99520.87341.06171.11141.0321.05361.03821.0246
SGAI 1.00781.65660.61211.11980.50710.9990.95751.00920.99911.0442
LVGI 1.04580.94871.02950.92741.04461.08111.01070.9981.03951.0155
TATA -0.084-0.1472-0.1572-0.1664-0.1408-0.1152-0.1218-0.1237-0.1224-0.114
M-score -2.86-3.43-3.28-3.43-2.20-2.72-3.14-3.08-3.09-3.06

Ryder System Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.03131.03460.99580.98510.92841.00110.99791.03311.05061.0073
GMI 0.97530.98270.98330.98530.95980.9310.91980.92320.94510.9791
AQI 0.93550.93240.94510.91320.940.91890.90340.96170.94210.9841
SGI 1.02921.03541.03371.03421.01981.0040.99320.98991.00591.0155
DEPI 1.0641.05121.00631.03821.0161.06341.08231.02461.03140.9624
SGAI 1.01731.01041.00160.99911.02821.05541.06131.04421.01470.9968
LVGI 1.01741.03371.02071.03951.01551.02561.0471.01551.01350.987
TATA -0.1213-0.1186-0.1332-0.1224-0.1254-0.1217-0.1162-0.1135-0.1189-0.1199
M-score -3.03-3.01-3.11-3.09-3.17-3.12-3.13-3.06-3.04-3.04
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