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Ryder System earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score61 / 100 · grade C · rank 673 of 1027

Ryder System (R) scores 61 of 100 for earnings quality, grade C: rank 673 of 1027 companies and 11 of 21 in other. It loses the most points on discretionary accruals of -15.3% of assets (modified Jones), larger than most, Dechow F-score 1.70 (above normal), Montier C-score 2 of 5 checks failed. It earns full or near-full marks for profit about as variable as cash flow (smoothness 1.23).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -12.7% of assets, lower than 89% of companies (profit backed by cash)2427
Dechow F-scoreDechow F-score 1.70 (above normal)1020
Montier C-scoreMontier C-score 2 of 5 checks failed1220
Discretionary accrualsdiscretionary accruals of -15.3% of assets (modified Jones), larger than most113
Non-GAAP gapadjusted earnings 12% below GAAP813
Earnings smoothnessprofit about as variable as cash flow (smoothness 1.23)77
R: share of the available points, by componentR: share of the available points, by componentAccruals89%Discretionary accruals5%Dechow F-score52%Montier C-score60%Non-GAAP gap59%Earnings smoothness100%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

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Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.