What does choicelease — capitalized sales commissions mean?

Sales commissions paid to acquire new contracts that are recorded as assets and amortized over time.

How do you interpret choicelease — capitalized sales commissions?

A rising balance suggests aggressive sales activity and new business acquisition, while a decline may indicate reduced sales investment or a shift in commission structures.

How does choicelease — capitalized sales commissions compare across companies?

Standard accounting practice for companies with significant contract acquisition costs in service-based industries.

Ryder System R ChoiceLease — Capitalized sales commissions

Discontinued — last reported Q3 '19

Similar metrics at other companies

ALLYNoninsurance Contracts — Deferred Sales Commission

$1.6B+6.7%

AIZService Contracts And Sales — Deferred Upfront Commissions And Other Costs

$68.6M-14.2%

IOTDeferred commissions, current

$88.77M—

IOTDeferred commissions, non-current

$184.68M-14.4%

CSGPDeferred commissions

-$34M0.0%

NTNXDeferred Commissions Current

$153.07M-4.2%

Other financials

Income statement

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Revenue$3.1B-0.2%

Net income$93.0M-5.1%

EPS (diluted)$2.33+2.6%

Balance sheet

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Cash & equivalents$182.0M+20.5%

Total debt$10.4B+5.0%

Total equity$2.9B-4.8%

Total assets$16.2B-1.2%

Cash flow

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Operating cash flow$583.0M-10.4%

CapEx$427.0M-16.9%

Free cash flow$156.0M+13.9%

Valuation

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Market cap$10.19B+33.7%

Enterprise value$20.44B+15.8%

P/E20.6×+5.4×

P/S0.8×+0.2×

Profitability

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Gross margin59.1%—

Net margin3.9%-0.1pp

FCF margin-0%0.0pp

Returns & leverage

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Return on equity16.9%+0.3pp

Debt / equity3.7×+0.3×

Current ratio0.7×-0.1×

Where this comes from

Reported directly by Ryder System in its filing.

Tagged under the XBRL concept r:ContractWithCustomerCapitalizedSalesCommissions.

The official record: Ryder System’s 10-Q, filed October 30, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does choicelease — capitalized sales commissions mean?: Sales commissions paid to acquire new contracts that are recorded as assets and amortized over time.
How do you interpret choicelease — capitalized sales commissions?: A rising balance suggests aggressive sales activity and new business acquisition, while a decline may indicate reduced sales investment or a shift in commission structures.
How does choicelease — capitalized sales commissions compare across companies?: Standard accounting practice for companies with significant contract acquisition costs in service-based industries.