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Agilent Technologies Inc (NYSE:A)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Agilent Technologies Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

A' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 5

1
9

During the past 13 years, the highest Piotroski F-Score of Agilent Technologies Inc was 9. The lowest was 1. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 195 + 139 + 147 + 16 = $497 Mil.
Cash Flow from Operations was 194 + 325 + 28 + 166 = $713 Mil.
Revenue was 1679 + 1731 + 1766 + 1805 = $6,981 Mil.
Gross Profit was 883 + 899 + 914 + 897 = $3,593 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(10686 + 10638 + 11026 + 10380 + 10760) / 5 = $10698 Mil.
Total Assets at the begining of this year (Oct13) was $10,686 Mil.
Long-Term Debt was $2,762 Mil.
Total Current Assets was $5,459 Mil.
Total Current Liabilities was $1,651 Mil.
Net Income was 179 + 166 + 168 + 211 = $724 Mil.

Revenue was 1680 + 1732 + 1652 + 1718 = $6,782 Mil.
Gross Profit was 880 + 891 + 856 + 908 = $3,535 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(10536 + 10653 + 10587 + 10278 + 10686) / 5 = $10548 Mil.
Total Assets at the begining of last year (Oct12) was $10,536 Mil.
Long-Term Debt was $2,699 Mil.
Total Current Assets was $4,983 Mil.
Total Current Liabilities was $1,602 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Agilent Technologies Inc's current net income (TTM) was 497. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Agilent Technologies Inc's current cash flow from operations (TTM) was 713. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

Agilent Technologies Inc's return on assets of this year was 0.04650945. Agilent Technologies Inc's return on assets of last year was 0.06871678. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Agilent Technologies Inc's current net income (TTM) was 497. Agilent Technologies Inc's current cash flow from operations (TTM) was 713. ==> 713 > 497 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=2762/10698
=0.2581791

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=2699/10548
=0.25587789

Agilent Technologies Inc's gearing of this year was 0.2581791. Agilent Technologies Inc's gearing of last year was 0.25587789. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Oct14)=Total Current Assets/Total Current Liabilities
=5459/1651
=3.30648092

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=4983/1602
=3.11048689

Agilent Technologies Inc's current ratio of this year was 3.30648092. Agilent Technologies Inc's current ratio of last year was 3.11048689. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Agilent Technologies Inc's number of shares in issue this year was 338. Agilent Technologies Inc's number of shares in issue last year was 336. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3593/6981
=0.51468271

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3535/6782
=0.52123267

Agilent Technologies Inc's gross margin of this year was 0.51468271. Agilent Technologies Inc's gross margin of last year was 0.52123267. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Oct13)
=6981/10686
=0.65328467

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=6782/10536
=0.6436978

Agilent Technologies Inc's asset turnover of this year was 0.65328467. Agilent Technologies Inc's asset turnover of last year was 0.6436978. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+0+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Agilent Technologies Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Agilent Technologies Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
Q1 1111011111
Q2 1111111111
Q3 0101011100
Q4 1011111111
Q5 1000011000
Q6 0101101011
Q7 0111100111
Q8 1111010000
Q9 0101010101
F-score 5758476656

Agilent Technologies Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111111111
Q2 1111111111
Q3 1100000000
Q4 1111111111
Q5 1011000010
Q6 0000111111
Q7 1011111110
Q8 0000000110
Q9 1100000001
F-score 7555555675
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