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

Acadia Healthcare Co Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

ACHC' s 10-Year Piotroski F-Score Range
Min: 5   Max: 7
Current: 7

5
7

During the past 5 years, the highest Piotroski F-Score of Acadia Healthcare Co Inc was 7. The lowest was 5. 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 13.058 + 22.451 + 25.402 + 22.129 = $83 Mil.
Cash Flow from Operations was 7.346 + 21.893 + 39.807 + 46.24 = $115 Mil.
Revenue was 201.418 + 213.803 + 294.479 + 294.901 = $1,005 Mil.
Gross Profit was 73.779 + 80.734 + 111.785 + 114.469 = $381 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(1224.659 + 1282.945 + 1592.552 + 2140.468 + 2223.59) / 5 = $1692.8428 Mil.
Total Assets at the begining of this year (Dec13) was $1,225 Mil.
Long-Term Debt was $1,069 Mil.
Total Current Assets was $274 Mil.
Total Current Liabilities was $166 Mil.
Net Income was 3.738 + 12.197 + 14.364 + 12.28 = $43 Mil.

Revenue was 161.213 + 177.494 + 184.702 + 189.999 = $713 Mil.
Gross Profit was 58.264 + 67.117 + 71.107 + 71.389 = $268 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(983.413 + 1085.177 + 1114.172 + 1162.986 + 1224.659) / 5 = $1114.0814 Mil.
Total Assets at the begining of last year (Dec12) was $983 Mil.
Long-Term Debt was $602 Mil.
Total Current Assets was $145 Mil.
Total Current Liabilities was $115 Mil.

Profitability

Question 1. 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 (TTM) was 83. ==> Positive ==> Score 1.

Question 2. 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 (TTM) was 115. ==> Positive ==> Score 1.

Question 3. 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 (TTM)/Total Assets at the Beginning of This Year (Dec13)
=83.04/1224.659
=0.06780663

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=42.579/983.413
=0.04329717

Acadia Healthcare Co Inc's return on assets of this year was 0.06780663. Acadia Healthcare Co Inc's return on assets of last year was 0.04329717. ==> This year is higher. ==> Score 1.

Question 4. 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 (TTM) was 83. Acadia Healthcare Co Inc's current cash flow from operations (TTM) was 115. ==> 115 > 83 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=1069.305/1692.8428
=0.63166231

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=601.941/1114.0814
=0.54030253

Acadia Healthcare Co Inc's gearing of this year was 0.63166231. Acadia Healthcare Co Inc's gearing of last year was 0.54030253. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Dec14)=Total Current Assets/Total Current Liabilities
=274.143/165.934
=1.65212072

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=145.126/114.69
=1.26537623

Acadia Healthcare Co Inc's current ratio of this year was 1.65212072. Acadia Healthcare Co Inc's current ratio of last year was 1.26537623. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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 59.5. Acadia Healthcare Co Inc's number of shares in issue last year was 50.4. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=380.767/1004.601
=0.37902311

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=267.877/713.408
=0.3754892

Acadia Healthcare Co Inc's gross margin of this year was 0.37902311. Acadia Healthcare Co Inc's gross margin of last year was 0.3754892. ==> This year's gross margin is higher. ==> Score 1.

Question 9. 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 (Dec13)
=1004.601/1224.659
=0.8203108

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=713.408/983.413
=0.72544089

Acadia Healthcare Co Inc's asset turnover of this year was 0.8203108. Acadia Healthcare Co Inc's asset turnover of last year was 0.72544089. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+1
=7

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

Acadia Healthcare Co Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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

Dec10Dec11Dec12Dec13Dec14
Question 1 1
Question 2 1
Question 3 1
Question 4 1
Question 5 0
Question 6 1
Question 7 0
Question 8 1
Question 9 1
F-score 7

Acadia Healthcare Co Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 11111
Question 2 11111
Question 3 01111
Question 4 11111
Question 5 11100
Question 6 00111
Question 7 00000
Question 8 11101
Question 9 00001
F-score 0000056757
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