Ryder Beneish M Score

R
 Stock
  

USD 96.05  3.05  3.28%   

This module uses fundamental data of Ryder System to approximate the value of its Beneish M Score. Ryder System M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at Ryder System Piotroski F Score and Ryder System Altman Z Score analysis.
  
Ryder System Total Debt is relatively stable at the moment as compared to the past year. Ryder System reported last year Total Debt of 4.85 Billion. As of 11/30/2022, Debt Current is likely to grow to about 768.5 M, while Issuance Repayment of Debt Securities is likely to drop (66.4 M). Ryder System Asset Turnover is relatively stable at the moment as compared to the past year. Ryder System reported last year Asset Turnover of 0.72. As of 11/30/2022, Current Ratio is likely to grow to 0.85, while Calculated Tax Rate is likely to drop 23.23.
At this time, it appears that Ryder System is an unlikely manipulator. The earnings manipulation may begin if Ryder System's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Ryder System executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Ryder System's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.84
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.1Focus
Asset Quality0.91Focus
Expense Coverage1.13Focus
Gross Margin Strengs1.2Focus
Accruals Factor1.13Focus
Depreciation Resistance0.96Focus
Net Sales Growth0.84Focus
Financial Leverage Condition1.08Focus

Ryder System Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Ryder System's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense720.8 M758.4 M
Notably Down
Increasing
Slightly volatile
Revenues8.1 B9.7 B
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables691.5 M748.8 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net6.4 BB
Significantly Down
Increasing
Slightly volatile
Operating Income978.1 M906.5 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations1.8 B2.2 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current5.2 B6.4 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities3.5 B3.2 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities9.4 B11 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current563.5 M543.1 M
Sufficiently Up
Increasing
Slightly volatile
Investments563.5 M543.1 M
Sufficiently Up
Increasing
Slightly volatile
Gross Margin22.418.644
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion895.2 M1.1 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current3.3 B4.1 B
Significantly Down
Increasing
Slightly volatile
Debt Current768.5 M712.3 M
Significantly Up
Increasing
Slightly volatile
Total Debt5.2 B4.9 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current7.2 B8.8 B
Significantly Down
Increasing
Slightly volatile
Current Assets2.7 B2.5 B
Significantly Up
Increasing
Slightly volatile
Total Assets11.8 B13.8 B
Fairly Down
Increasing
Slightly volatile

Ryder System Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Ryder System's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ryder System in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Ryder System's degree of accounting gimmicks and manipulations.

About Ryder System Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Margin

8.34

Ryder System Operating Margin is relatively stable at the moment as compared to the past year. Ryder System reported last year Operating Margin of 9.38

Ryder System Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Ryder System. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues7.33 B8.41 B8.93 B8.42 B9.66 B8.12 B
Total Assets11.45 B13.05 B14.48 B12.93 B13.83 B11.81 B
Current Assets1.32 B1.57 B1.56 B1.6 B2.46 B2.65 B
Total Liabilities8.62 B10.14 B12 B10.68 B11.04 B9.45 B
Current Liabilities2.01 B2.29 B2.63 B2.05 B3.2 B3.45 B
Operating Income454.14 M552.42 M199.11 M130.98 M906.53 M978.1 M
Gross Margin19.9718.8115.3615.1518.6422.4

About Ryder System Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ryder System's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ryder System using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ryder System based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Ryder System, Inc. operates as a logistics and transportation company worldwide. Ryder System, Inc. was founded in 1933 and is headquartered in Miami, Florida. Ryder System operates under Rental Leasing Services classification in the United States and is traded on New York Stock Exchange. It employs 42800 people.

Ryder System Investors Sentiment

The influence of Ryder System's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Ryder. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Ryder System's public news can be used to forecast risks associated with investment in Ryder. The trend in average sentiment can be used to explain how an investor holding Ryder can time the market purely based on public headlines and social activities around Ryder System. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Ryder System's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ryder System's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Ryder System's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Ryder System.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Ryder System in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Ryder System's short interest history, or implied volatility extrapolated from Ryder System options trading.

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Additionally, take a look at Ryder System Piotroski F Score and Ryder System Altman Z Score analysis. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Ryder System price analysis, check to measure Ryder System's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ryder System is operating at the current time. Most of Ryder System's value examination focuses on studying past and present price action to predict the probability of Ryder System's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ryder System's price. Additionally, you may evaluate how the addition of Ryder System to your portfolios can decrease your overall portfolio volatility.
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Is Ryder System's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ryder System. If investors know Ryder will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ryder System listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.88
Market Capitalization
4.7 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.0539
Return On Equity
0.31
The market value of Ryder System is measured differently than its book value, which is the value of Ryder that is recorded on the company's balance sheet. Investors also form their own opinion of Ryder System's value that differs from its market value or its book value, called intrinsic value, which is Ryder System's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ryder System's market value can be influenced by many factors that don't directly affect Ryder System's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ryder System's value and its price as these two are different measures arrived at by different means. Investors typically determine Ryder System value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ryder System's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.