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Ryder System Inc (NYSE:R)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

R' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74   Max: 3.35
Current: -3.12

-3.74
3.35

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 3.35. The lowest was -3.74. And the median was -3.05.


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 * 0.9979+0.528 * 0.9194+0.404 * 0.9034+0.892 * 0.9932+0.115 * 1.0739
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0613+4.679 * -0.1145-0.327 * 1.047
=-3.12

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $814 Mil.
Revenue was 1669.066 + 1662.931 + 1567.153 + 1656.316 = $6,555 Mil.
Gross Profit was 382.599 + 385.959 + 329.36 + 368.067 = $1,466 Mil.
Total Current Assets was $1,118 Mil.
Total Assets was $10,820 Mil.
Property, Plant and Equipment(Net PPE) was $8,749 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,155 Mil.
Selling, General & Admin. Expense(SGA) was $847 Mil.
Total Current Liabilities was $1,367 Mil.
Long-Term Debt was $5,145 Mil.
Net Income was 90.619 + 85.159 + 52.916 + 11.313 = $240 Mil.
Non Operating Income was 30.666 + 34.265 + 32.216 + -78.487 = $19 Mil.
Cash Flow from Operations was 412.638 + 380.82 + 277.878 + 388.947 = $1,460 Mil.
Accounts Receivable was $821 Mil.
Revenue was 1687.15 + 1684.571 + 1610.737 + 1617.729 = $6,600 Mil.
Gross Profit was 362.492 + 348.062 + 304.26 + 342.275 = $1,357 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 $1,080 Mil.
Selling, General & Admin. Expense(SGA) was $804 Mil.
Total Current Liabilities was $1,476 Mil.
Long-Term Debt was $4,045 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)
=(814.16 / 6555.466) / (821.446 / 6600.187)
=0.12419559 / 0.12445799
=0.9979

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)
=(385.959 / 6600.187) / (382.599 / 6555.466)
=0.20561372 / 0.22362789
=0.9194

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 - (1117.527 + 8748.879) / 10820.186) / (1 - (1122.362 + 7544.881) / 9604.362)
=0.08814821 / 0.09757223
=0.9034

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
=6555.466 / 6600.187
=0.9932

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))
=(1079.876 / (1079.876 + 7544.881)) / (1154.677 / (1154.677 + 8748.879))
=0.12520654 / 0.11659216
=1.0739

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)
=(847.408 / 6555.466) / (803.941 / 6600.187)
=0.12926739 / 0.12180579
=1.0613

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)
=((5144.938 + 1367.262) / 10820.186) / ((4045.245 + 1475.573) / 9604.362)
=0.60185657 / 0.57482402
=1.047

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
=(240.007 - 18.66 - 1460.283) / 10820.186
=-0.1145

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 -3.12 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 0.91720.82431.15660.97751.04170.85950.98870.9851
GMI 01.20010.98212.35041.01271.03090.97310.9841
AQI 1.09191.03711.13241.17610.91030.96220.93140.9297
SGI 1.04110.91370.81471.0511.1781.03411.02591.0342
DEPI 0.90980.99520.87341.06171.11141.0321.07761.0056
SGAI 1.65660.61211.11980.50710.9990.95751.00920.9991
LVGI 0.94871.02950.92741.04461.08111.01070.9981.0198
TATA -0.1239-0.1344-0.1433-0.1354-0.1152-0.1218-0.1188-0.1221
M-score -3.70-3.17-3.14-2.23-2.86-3.14-3.06-3.08

Ryder System Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.99060.98871.03131.03460.99580.98510.92841.00110.99790
GMI 0.99670.97310.97780.98520.98570.98450.95940.93060.91940.9221
AQI 0.95780.93140.93550.93240.94510.92970.940.91890.90340.9446
SGI 1.02741.02591.02921.03541.03371.03421.01981.0040.99320.9899
DEPI 1.04231.07761.08791.07421.02781.00561.01061.05031.07391.3701
SGAI 0.98041.00921.01731.01041.00160.99911.02821.05541.06131.0442
LVGI 0.97350.9981.01741.03371.02071.01981.01551.02561.0471.0352
TATA -0.1278-0.118-0.1158-0.114-0.1285-0.1221-0.1226-0.1199-0.1145-0.0803
M-score -3.06-3.05-3.00-2.99-3.09-3.08-3.16-3.12-3.12-3.82
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