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Ryder System Inc (NYSE:R)
Beneish M-Score
-3.07 (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 -3.07 suggests that the company is not a manipulator.

R' s 10-Year Beneish M-Score Range
Min: -3.64   Max: -2.16
Current: -3.07

-3.64
-2.16

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was -2.16. The lowest was -3.64. 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 * 0.9851+0.528 * 0.9841+0.404 * 0.9297+0.892 * 1.0342+0.115 * 1.0056
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9991+4.679 * -0.1211-0.327 * 1.0198
=-3.07

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $693 Mil.
Revenue was 1656.316 + 1687.15 + 1684.571 + 1610.737 = $6,639 Mil.
Gross Profit was 369.695 + 361.806 + 347.591 + 304.26 = $1,383 Mil.
Total Current Assets was $1,076 Mil.
Total Assets was $9,676 Mil.
Property, Plant and Equipment(Net PPE) was $7,694 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,088 Mil.
Selling, General & Admin. Expense(SGA) was $817 Mil.
Total Current Liabilities was $1,094 Mil.
Long-Term Debt was $4,500 Mil.
Net Income was 11.296 + 83.689 + 75.358 + 48.232 = $219 Mil.
Non Operating Income was 18.387 + 0.996 + -4.828 + 5.382 = $20 Mil.
Cash Flow from Operations was 395.335 + 438.156 + 298.84 + 237.66 = $1,370 Mil.
Accounts Receivable was $680 Mil.
Revenue was 1617.729 + 1634.54 + 1603.999 + 1563.017 = $6,419 Mil.
Gross Profit was 342.275 + 345.681 + 332.4 + 296.058 = $1,316 Mil.
Total Current Assets was $1,062 Mil.
Total Assets was $9,104 Mil.
Property, Plant and Equipment(Net PPE) was $7,125 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,014 Mil.
Selling, General & Admin. Expense(SGA) was $791 Mil.
Total Current Liabilities was $1,231 Mil.
Long-Term Debt was $3,930 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)
=(693.114 / 6638.774) / (680.345 / 6419.285)
=0.10440392 / 0.10598455
=0.9851

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)
=(361.806 / 6419.285) / (369.695 / 6638.774)
=0.20507175 / 0.20837462
=0.9841

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 - (1076.197 + 7694.042) / 9675.986) / (1 - (1062.493 + 7124.663) / 9103.782)
=0.09360772 / 0.10068629
=0.9297

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
=6638.774 / 6419.285
=1.0342

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))
=(1013.53 / (1013.53 + 7124.663)) / (1087.522 / (1087.522 + 7694.042))
=0.12453993 / 0.12384149
=1.0056

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)
=(816.975 / 6638.774) / (790.681 / 6419.285)
=0.12306113 / 0.12317275
=0.9991

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)
=((4500.275 + 1093.591) / 9675.986) / ((3929.987 + 1231.139) / 9103.782)
=0.57811845 / 0.56692109
=1.0198

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
=(218.575 - 19.937 - 1369.991) / 9675.986
=-0.1211

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 -3.07 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 1.00480.91720.82431.15660.97751.04170.85950.98870.9851
GMI 001.16840.98172.4151.01271.02680.97690.9841
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 0.91831.65660.64761.1150.48140.9990.96131.00520.9991
LVGI 1.04810.94871.02950.92741.04461.08111.01070.9981.0198
TATA -0.09-0.1239-0.1344-0.1433-0.1354-0.1144-0.1115-0.1188-0.1221
M-score -3.36-3.70-3.19-3.14-2.19-2.86-3.09-3.05-3.08

Ryder System Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96840.85950.96210.95590.99060.98871.03131.03460.99580.9851
GMI 0.18711.02681.01761.00130.99290.97690.98170.98930.99030.9841
AQI 0.89960.96220.98830.95760.95780.93140.93550.93240.94510.9297
SGI 1.06731.03411.01981.0181.02741.02591.02921.03541.03371.0342
DEPI 1.04841.0320.98131.02361.04231.07761.08791.07971.03731.0056
SGAI 2.45610.96130.94060.95640.98421.00521.01321.00640.99770.9991
LVGI 1.0491.01070.97160.97360.97350.9981.01741.03371.02071.0198
TATA -0.0983-0.1113-0.1177-0.1165-0.1181-0.118-0.1127-0.1058-0.1168-0.1211
M-score -3.64-3.09-3.03-3.05-3.02-3.05-2.99-2.95-3.03-3.07
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