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Autodesk Inc (NAS:ADSK)
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

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

ADSK' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 13 years, the highest Piotroski F-Score of Autodesk Inc was 8. The lowest was 4. 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 (Jan15) TTM:Last Year (Jan14) TTM:
Net Income was 28.3 + 31.3 + 10.7 + 11.5 = $82 Mil.
Cash Flow from Operations was 218.7 + 96.2 + 136 + 257.2 = $708 Mil.
Revenue was 592.5 + 637.1 + 618 + 664.6 = $2,512 Mil.
Gross Profit was 513.8 + 549.2 + 532 + 575.1 = $2,170 Mil.
Average Total Assets from the begining of this year (Jan14)
to the end of this year (Jan15) was
(4595 + 4648.6 + 4703.4 + 4736.8 + 4913.8) / 5 = $4719.52 Mil.
Total Assets at the begining of this year (Jan14) was $4,595 Mil.
Long-Term Debt was $747 Mil.
Total Current Assets was $2,671 Mil.
Total Current Liabilities was $1,400 Mil.
Net Income was 55.6 + 61.7 + 57.6 + 53.9 = $229 Mil.

Revenue was 570.4 + 561.7 + 555.2 + 586.6 = $2,274 Mil.
Gross Profit was 502.9 + 493.9 + 488.1 + 514.7 = $2,000 Mil.
Average Total Assets from the begining of last year (Jan13)
to the end of last year (Jan14) was
(4308.4 + 4289.7 + 4223.3 + 4321.5 + 4595) / 5 = $4347.58 Mil.
Total Assets at the begining of last year (Jan13) was $4,308 Mil.
Long-Term Debt was $746 Mil.
Total Current Assets was $2,835 Mil.
Total Current Liabilities was $1,072 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.

Autodesk Inc's current net income (TTM) was 82. ==> 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.

Autodesk Inc's current cash flow from operations (TTM) was 708. ==> 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 (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=228.8/4308.4
=0.05310556

Autodesk Inc's return on assets of this year was 0.01780196. Autodesk Inc's return on assets of last year was 0.05310556. ==> Last year is higher ==> Score 0.

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.

Autodesk Inc's current net income (TTM) was 82. Autodesk Inc's current cash flow from operations (TTM) was 708. ==> 708 > 82 ==> 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: Jan15)=Long-Term Debt/Average Total Assets from Jan14 to Jan15
=747.2/4719.52
=0.15832119

Gearing (Last Year: Jan14)=Long-Term Debt/Average Total Assets from Jan13 to Jan14
=746.4/4347.58
=0.17168172

Autodesk Inc's gearing of this year was 0.15832119. Autodesk Inc's gearing of last year was 0.17168172. ==> This year is lower or equal to last year. ==> Score 1.

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: Jan15)=Total Current Assets/Total Current Liabilities
=2671.3/1400.1
=1.90793515

Current Ratio (Last Year: Jan14)=Total Current Assets/Total Current Liabilities
=2835/1071.5
=2.64582361

Autodesk Inc's current ratio of this year was 1.90793515. Autodesk Inc's current ratio of last year was 2.64582361. ==> Last year's current ratio is higher ==> Score 0.

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.

Autodesk Inc's number of shares in issue this year was 233.9. Autodesk Inc's number of shares in issue last year was 232.6. ==> 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
=2170.1/2512.2
=0.86382454

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1999.6/2273.9
=0.87937024

Autodesk Inc's gross margin of this year was 0.86382454. Autodesk Inc's gross margin of last year was 0.87937024. ==> Last year's gross margin is higher ==> Score 0.

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 (Jan14)
=2512.2/4595
=0.5467247

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=2273.9/4308.4
=0.52778294

Autodesk Inc's asset turnover of this year was 0.5467247. Autodesk Inc's asset turnover of last year was 0.52778294. ==> 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+0+1+1+0+0+0+1
=5

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

Autodesk 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.

Autodesk Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Question 1 1111111111
Question 2 1111111111
Question 3 1000011000
Question 4 1111111111
Question 5 1111011011
Question 6 0100111110
Question 7 0111001110
Question 8 1011010100
Question 9 1100010001
F-score 7766487665

Autodesk Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
Question 1 1111111111
Question 2 1111111111
Question 3 0000000000
Question 4 1111111111
Question 5 1000011111
Question 6 0111110000
Question 7 1011110000
Question 8 1100000000
Question 9 0000000001
F-score 6555564445
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