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Ryder System Inc (NYSE:R)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

R' s Beneish M-Score Range Over the Past 10 Years
Min: -3.97   Max: 6.1
Current: -2.99

-3.97
6.1

During the past 13 years, the highest Beneish M-Score of Ryder System Inc was 6.10. The lowest was -3.97. And the median was -3.01.


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 * 1.0249+0.528 * 0.9972+0.404 * 0.9763+0.892 * 1.0267+0.115 * 0.9628
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9797+4.679 * -0.1193-0.327 * 0.9714
=-2.99

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $857 Mil.
Revenue was 1724.418 + 1703.744 + 1629.672 + 1672.743 = $6,731 Mil.
Gross Profit was 390.82 + 386.835 + 346.567 + 386.774 = $1,511 Mil.
Total Current Assets was $1,138 Mil.
Total Assets was $11,109 Mil.
Property, Plant and Equipment(Net PPE) was $9,015 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,254 Mil.
Selling, General & Admin. Expense(SGA) was $852 Mil.
Total Current Liabilities was $2,030 Mil.
Long-Term Debt was $4,464 Mil.
Net Income was 84.752 + 73.75 + 55.794 + 76.201 = $290 Mil.
Non Operating Income was 5.12 + 17.456 + 21.394 + 16.593 = $61 Mil.
Cash Flow from Operations was 422.072 + 397.663 + 365.009 + 370.452 = $1,555 Mil.
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 + 369.695 = $1,468 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 $1,166 Mil.
Selling, General & Admin. Expense(SGA) was $847 Mil.
Total Current Liabilities was $1,367 Mil.
Long-Term Debt was $5,145 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)
=(856.763 / 6730.577) / (814.16 / 6555.466)
=0.12729414 / 0.12419559
=1.0249

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)
=(1467.613 / 6555.466) / (1510.996 / 6730.577)
=0.22387623 / 0.22449725
=0.9972

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 - (1137.559 + 9015.207) / 11108.773) / (1 - (1117.527 + 8748.879) / 10820.186)
=0.08605874 / 0.08814821
=0.9763

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
=6730.577 / 6555.466
=1.0267

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))
=(1165.977 / (1165.977 + 8748.879)) / (1254.354 / (1254.354 + 9015.207))
=0.11759898 / 0.1221429
=0.9628

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)
=(852.397 / 6730.577) / (847.408 / 6555.466)
=0.12664546 / 0.12926739
=0.9797

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)
=((4464.495 + 2029.851) / 11108.773) / ((5144.938 + 1367.262) / 10820.186)
=0.58461416 / 0.60185657
=0.9714

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
=(290.497 - 60.563 - 1555.196) / 11108.773
=-0.1193

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 -2.99 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 local exchange's currency.

Ryder System Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.97980.91720.82430.95281.03181.05010.98030.98870.98511.0331
GMI 1.01970.71861.20010.93081.11962.2431.02680.97230.98880.9219
AQI 0.83921.09191.03711.13241.17610.91030.96220.93140.92970.9446
SGI 1.09861.04110.91370.81471.0511.1781.03411.02591.03420.9899
DEPI 1.15570.90980.99520.87341.06171.11141.0321.07761.00561.0342
SGAI 1.00781.65660.61211.11980.96620.52440.96131.00520.99911.0442
LVGI 1.04580.94871.02950.92741.04461.08111.01070.9981.01981.0352
TATA -0.084-0.1472-0.1572-0.1454-0.1549-0.1234-0.1219-0.11-0.1221-0.114
M-score -2.86-3.43-3.28-3.36-3.00-2.16-3.03-3.02-3.07-3.07

Ryder System Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.03460.99580.98510.92841.00110.99791.03311.05061.00731.0249
GMI 0.98830.99130.98880.96280.93240.91940.92240.94340.97770.9972
AQI 0.93240.94510.92970.940.91890.90340.94460.94210.98410.9763
SGI 1.03541.03371.03421.01981.0040.99320.98991.00591.01551.0267
DEPI 1.07971.03731.00561.01061.041.05491.03421.01130.96180.9628
SGAI 1.00240.99770.99911.02921.05751.06131.04421.01470.99680.9797
LVGI 1.03371.02071.01981.01551.02561.0471.03521.01350.9870.9714
TATA -0.0985-0.1099-0.1221-0.1255-0.1264-0.124-0.114-0.1198-0.1199-0.1193
M-score -2.91-3.00-3.07-3.17-3.15-3.17-3.07-3.05-3.04-2.99
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