GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Ryan Specialty Holdings Inc (NYSE:RYAN) » Definitions » Beneish M-Score

RYAN (Ryan Specialty Holdings) Beneish M-Score : -2.59 (As of Mar. 03, 2025)


View and export this data going back to 2021. Start your Free Trial

What is Ryan Specialty Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.59 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ryan Specialty Holdings's Beneish M-Score or its related term are showing as below:

RYAN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.59   Med: -2.55   Max: -2.4
Current: -2.59

During the past 6 years, the highest Beneish M-Score of Ryan Specialty Holdings was -2.40. The lowest was -2.59. And the median was -2.55.


Ryan Specialty Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Ryan Specialty Holdings 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 * 0.9955+0.528 * 1+0.404 * 1.0046+0.892 * 1.2109+0.115 * 0.8484
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0047+4.679 * -0.043545-0.327 * 1.2135
=-2.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $4,174 Mil.
Revenue was 663.529 + 604.694 + 695.441 + 552.046 = $2,516 Mil.
Gross Profit was 663.529 + 604.694 + 695.441 + 552.046 = $2,516 Mil.
Total Current Assets was $0 Mil.
Total Assets was $9,650 Mil.
Property, Plant and Equipment(Net PPE) was $183 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General, & Admin. Expense(SGA) was $1,943 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,390 Mil.
Net Income was 13.754 + 17.589 + 46.787 + 16.535 = $95 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 259.64 + 100.94 + 270.827 + -116.539 = $515 Mil.
Total Receivables was $3,462 Mil.
Revenue was 532.863 + 501.938 + 585.149 + 457.599 = $2,078 Mil.
Gross Profit was 532.863 + 501.938 + 585.149 + 457.599 = $2,078 Mil.
Total Current Assets was $0 Mil.
Total Assets was $7,247 Mil.
Property, Plant and Equipment(Net PPE) was $170 Mil.
Depreciation, Depletion and Amortization(DDA) was $116 Mil.
Selling, General, & Admin. Expense(SGA) was $1,597 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $2,098 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(4173.799 / 2515.71) / (3462.322 / 2077.549)
=1.659094 / 1.666542
=0.9955

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)
=(2077.549 / 2077.549) / (2515.71 / 2515.71)
=1 / 1
=1

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 183.465) / 9649.918) / (1 - (0 + 170.135) / 7247.209)
=0.980988 / 0.976524
=1.0046

4. SGI = Sales Growth Index

Ratio of Revenue 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
=2515.71 / 2077.549
=1.2109

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(115.837 / (115.837 + 170.135)) / (167.63 / (167.63 + 183.465))
=0.405064 / 0.477449
=0.8484

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(1943.127 / 2515.71) / (1597.21 / 2077.549)
=0.772397 / 0.768795
=1.0047

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3390.359 + 0) / 9649.918) / ((2098.294 + 0) / 7247.209)
=0.351336 / 0.289531
=1.2135

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
=(94.665 - 0 - 514.868) / 9649.918
=-0.043545

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Ryan Specialty Holdings has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.


Ryan Specialty Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Ryan Specialty Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Ryan Specialty Holdings Business Description

Traded in Other Exchanges
N/A
Address
155 North Wacker Drive, Suite 4000, Chicago, IL, USA, 60606
Ryan Specialty Holdings Inc is a service provider of specialty products and solutions for insurance brokers, agents, and carriers. It provides distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter.
Executives
Nicholas Dominic Cortezi director, officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Mark Stephen Katz officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
David P Bolger director 200 EST RANDOLPH ST, CHICAGO IL 60601
Brendan Martin Mulshine officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Jeremiah Rawlins Bickham officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Timothy William Turner director, officer: President 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Anthony J Kuczinski director 800 GESSNER ROAD, SUITE 600, HOUSTON TX 77024
Lisa Jo Paschal-alcorn officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Michael Conklin officer: EVP & CHRO 500 DELAWARE AVENUE, WSFS FINANCIAL CORPORATION & BANK CENTER, WILMINGTON DE 19801
Francesca Cornelli director C/O GROSVENOR CAPITAL MANAGEMENT, 900 NORTH MICHIGAN AVENUE, SUITE 1100, CHICAGO IL 60611
Onex Corp director 161 BAY STREET, P O BOX 700, TORONTO ONTARIO CANA A6
Patrick G Ryan director, 10 percent owner, officer: Chief Executive Officer 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Michael Thomas Vanacker officer: See Remarks 180 N. STETSON AVENUE, SUITE 4600, CHICAGO IL 60601
Michael D Ohalleran director 1450 WAUKEGAN ROAD, MCGAW PARK, CHICAGO IL 60085
Michelle L Collins director C/O MOLEX INCORPORATED, 2222 WELLINGTON COURT, LISLE IL 60503