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Ryder System Inc (NYSE:R)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

R' s 10-Year Beneish M-Score Range
Min: -4.25   Max: 6.17
Current: -2.92

-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 * 1.0346+0.528 * 0.9883+0.404 * 0.9324+0.892 * 1.0354+0.115 * 1.0797
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0024+4.679 * -0.0992-0.327 * 1.0337
=-2.92

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $827 Mil.
Revenue was 1684.571 + 1610.737 + 1617.729 + 1634.54 = $6,548 Mil.
Gross Profit was 347.591 + 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 $1,052 Mil.
Selling, General & Admin. Expense(SGA) was $797 Mil.
Total Current Liabilities was $1,517 Mil.
Long-Term Debt was $4,159 Mil.
Net Income was 75.358 + 48.232 + 64.607 + 71.067 = $259 Mil.
Non Operating Income was -4.828 + 5.382 + 27.732 + -3.745 = $25 Mil.
Cash Flow from Operations was 298.84 + 237.66 + 337.41 + 321.895 = $1,196 Mil.
Accounts Receivable was $772 Mil.
Revenue was 1603.999 + 1563.017 + 1583.536 + 1573.295 = $6,324 Mil.
Gross Profit was 333.624 + 297.167 + 324.914 + 326.871 = $1,283 Mil.
Total Current Assets was $1,062 Mil.
Total Assets was $8,560 Mil.
Property, Plant and Equipment(Net PPE) was $6,615 Mil.
Depreciation, Depletion and Amortization(DDA) was $997 Mil.
Selling, General & Admin. Expense(SGA) was $768 Mil.
Total Current Liabilities was $1,197 Mil.
Long-Term Debt was $3,656 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)
=(827.274 / 6547.577) / (772.262 / 6323.847)
=0.12634811 / 0.12211902
=1.0346

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)
=(304.26 / 6323.847) / (347.591 / 6547.577)
=0.20281579 / 0.20522569
=0.9883

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 - (1137.47 + 7618.179) / 9687.667) / (1 - (1062.335 + 6614.735) / 8560.347)
=0.09620665 / 0.10318238
=0.9324

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
=6547.577 / 6323.847
=1.0354

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))
=(997.2 / (997.2 + 6614.735)) / (1051.986 / (1051.986 + 7618.179))
=0.1310048 / 0.12133402
=1.0797

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)
=(797.158 / 6547.577) / (768.045 / 6323.847)
=0.12174855 / 0.12145218
=1.0024

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)
=((4159.472 + 1516.68) / 9687.667) / ((3655.71 + 1196.626) / 8560.347)
=0.58591527 / 0.5668387
=1.0337

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
=(259.264 - 24.541 - 1195.805) / 9687.667
=-0.0992

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 -2.92 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 1.06641.00480.97980.91720.79711.1960.97751.04170.99410.9767
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 -2.95-2.92-2.71-3.04-3.60-3.01-2.96-2.09-2.97-3.03

Ryder System Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.00730.9450.96840.99410.96210.95590.99060.97671.03131.0346
GMI 3.23385.291218.02841.02510.72370.4270.1230.9740.97960.9883
AQI 0.86420.90290.89960.96220.98830.95760.95780.93140.93550.9324
SGI 1.15341.11541.06731.03411.01981.0181.02741.02591.02921.0354
DEPI 1.09141.03351.04841.0320.98831.02361.04231.07761.08791.0797
SGAI 0.38480.27030.1430.9641.24251.78813.42211.00241.00981.0024
LVGI 1.09781.04861.0491.01070.97160.97360.97350.9981.01741.0337
TATA -0.102-0.1055-0.0999-0.11-0.1159-0.1152-0.1148-0.1109-0.1063-0.0992
M-score -1.60-0.586.17-2.97-3.22-3.49-3.88-3.03-2.96-2.92
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