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Acadia Healthcare Co Inc (NAS:ACHC)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Acadia Healthcare Co Inc has an F-score of 7 indicating the company's financial situation is typical for a stable company.

ACHC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 7

3
7

During the past 4 years, the highest Piotroski F-Score of Acadia Healthcare Co Inc was 7. 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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 22.451 + 13.058 + 12.28 + 14.364 = $62.2 Mil.
Cash Flow from Operations was 21.893 + 7.346 + 20.687 + 15.63 = $65.6 Mil.
Revenue was 213.803 + 201.418 + 189.999 + 184.702 = $789.9 Mil.
Gross Profit was 80.734 + 73.779 + 71.389 + 71.107 = $297.0 Mil.
Total Assets at the begining of this year (Jun13) was $1,114.2 Mil.
Total Assets was $1,592.6 Mil.
Long-Term Debt was $555.8 Mil.
Total Current Assets was $449.6 Mil.
Total Current Liabilities was $102.7 Mil.
Net Income was 12.197 + 3.738 + 4.365 + 6.45 = $26.8 Mil.

Revenue was 177.494 + 161.213 + 114.252 + 103.116 = $556.1 Mil.
Gross Profit was 67.117 + 58.264 + 42.855 + 38.397 = $206.6 Mil.
Total Assets at the begining of last year (Jun12) was $586.5 Mil.
Total Assets was $1,114.2 Mil.
Long-Term Debt was $556.3 Mil.
Total Current Assets was $127.1 Mil.
Total Current Liabilities was $86.7 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.

Acadia Healthcare Co Inc's current net income was 62.2. ==> 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.

Acadia Healthcare Co Inc's current cash flow from operations was 65.6. ==> 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 (Jun13)
=62.153/1114.172
=0.05578403

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=26.75/586.453
=0.0456132

Acadia Healthcare Co Inc's return on assets of this year was 0.05578403. Acadia Healthcare Co Inc's return on assets of last year was 0.0456132. ==> This year is higher. ==> Score 1.

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.

Acadia Healthcare Co Inc's current net income was 62.2. Acadia Healthcare Co Inc's current cash flow from operations was 65.6. ==> 65.6 > 62.2 ==> 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)=Long-Term Debt/Total Assets
=555.812/1592.552
=0.34900713

Gearing (Last Year)=Long-Term Debt/Total Assets
=556.276/1114.172
=0.499273

Acadia Healthcare Co Inc's gearing of this year was 0.34900713. Acadia Healthcare Co Inc's gearing of last year was 0.499273. ==> This year is lower or equal to last year. ==> 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
=449.596/102.665
=4.37925291

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=127.089/86.679
=1.46620289

Acadia Healthcare Co Inc's current ratio of this year was 4.37925291. Acadia Healthcare Co Inc's current ratio of last year was 1.46620289. ==> 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.

Acadia Healthcare Co Inc's number of shares in issue this year was 51.8. Acadia Healthcare Co Inc's number of shares in issue last year was 50.3. ==> 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)=Gross Profit/Revenue
=297.009/789.922
=0.37599788

Gross Margin (Last Year)=Gross Profit/Revenue
=206.633/556.075
=0.37159196

Acadia Healthcare Co Inc's gross margin of this year was 0.37599788. Acadia Healthcare Co Inc's gross margin of last year was 0.37159196. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=789.922/1114.172
=0.70897671

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=556.075/586.453
=0.94820045

Acadia Healthcare Co Inc's asset turnover of this year was 0.70897671. Acadia Healthcare Co Inc's asset turnover of last year was 0.94820045. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Acadia Healthcare Co Inc has an F-score of 7 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.

Acadia Healthcare Co Inc Annual Data

Dec10Dec11Dec12Dec13
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Q9
F-score

Acadia Healthcare Co Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 111
Q2 111
Q3 011
Q4 111
Q5 011
Q6 001
Q7 000
Q8 011
Q9 000
F-score 0000000367
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