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AmerisourceBergen Corp (NYSE:ABC)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

AmerisourceBergen Corp has an F-score of 4 indicating the company's financial situation is typical for a stable company.

ABC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 4

3
8

During the past 13 years, the highest Piotroski F-Score of AmerisourceBergen Corp was 8. The lowest was 3. And the median was 6.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 41.385 + 51.023 + 168.439 + 45.634 = $306 Mil.
Cash Flow from Operations was -1003.643 + -30.939 + 75.409 + 985.362 = $26 Mil.
Revenue was 29176.362 + 24469.04 + 21906.648 + 20523.668 = $96,076 Mil.
Gross Profit was 688.225 + 567.552 + 562.45 + 716.989 = $2,535 Mil.
Total Assets at the begining of this year (Dec12) was $15,496 Mil.
Total Assets was $19,796 Mil.
Long-Term Debt was $1,397 Mil.
Total Current Assets was $15,228 Mil.
Total Current Liabilities was $15,829 Mil.
Net Income was 168.611 + 163.494 + 181.271 + 212.105 = $725 Mil.

Revenue was 21059.811 + 19064.443 + 19326.807 + 19708.371 = $79,159 Mil.
Gross Profit was 660.828 + 713.817 + 667.866 + 679.741 = $2,722 Mil.
Total Assets at the begining of last year (Dec11) was $15,978 Mil.
Total Assets was $15,496 Mil.
Long-Term Debt was $1,396 Mil.
Total Current Assets was $11,022 Mil.
Total Current Liabilities was $11,436 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.

AmerisourceBergen Corp's current net income was 306. ==> 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.

AmerisourceBergen Corp's current cash flow from operations was 26. ==> 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.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Dec12)
=306.481/15495.532
=0.01977867

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=725.481/15978.266
=0.04540424

AmerisourceBergen Corp's return on assets of this year was 0.01977867. AmerisourceBergen Corp's return on assets of last year was 0.04540424. ==> 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.

AmerisourceBergen Corp's current net income was 306. AmerisourceBergen Corp's current cash flow from operations was 26. ==> 26 =< 306 ==> CFROA =< ROA ==> Score 0.

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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=1396.776/19796.095
=0.07055816

Gearing (Last Year)=Long-Term Debt/Total Assets
=1396.107/15495.532
=0.09009739

AmerisourceBergen Corp's gearing of this year was 0.07055816. AmerisourceBergen Corp's gearing of last year was 0.09009739. ==> This year is lower. ==> Score 1.

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)=Total Current Assets/Total Current Liabilities
=15228.345/15828.898
=0.96205971

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=11022.199/11435.737
=0.9638381

AmerisourceBergen Corp's current ratio of this year was 0.96205971. AmerisourceBergen Corp's current ratio of last year was 0.9638381. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

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

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

AmerisourceBergen Corp's number of shares in issue this year was 237. AmerisourceBergen Corp's number of shares in issue last year was 236. ==> There is more 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)=Gross Profit/Revenue
=2535.216/96075.718
=0.02638769

Gross Margin (Last Year)=Gross Profit/Revenue
=2722.252/79159.432
=0.03438948

AmerisourceBergen Corp's gross margin of this year was 0.02638769. AmerisourceBergen Corp's gross margin of last year was 0.03438948. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Dec12)
=96075.718/15495.532
=6.20022068

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=79159.432/15978.266
=4.95419415

AmerisourceBergen Corp's asset turnover of this year was 6.20022068. AmerisourceBergen Corp's asset turnover of last year was 4.95419415. ==> 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+0+1+0+0+0+1
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

AmerisourceBergen Corp has an F-score of 4 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.

AmerisourceBergen Corp Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111011111
Q2 1111111111
Q3 0010011100
Q4 1111111111
Q5 1100110101
Q6 0000001000
Q7 0111111111
Q8 0010001110
Q9 0110010001
F-score 4674477756

AmerisourceBergen Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1100000000
Q4 1111101110
Q5 1000011111
Q6 0000000000
Q7 1111111110
Q8 1110111100
Q9 0000000011
F-score 7654556664
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