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Apollo Education Group Inc (NAS:APOL)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

APOL' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of Apollo Education Group Inc was 9. 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 (May14) TTM:Last Year (May13) TTM:
Net Income was 21.551 + 98.891 + 14.605 + 66.025 = $201 Mil.
Cash Flow from Operations was 87.695 + 128.897 + 64.587 + 95.522 = $377 Mil.
Revenue was 844.981 + 856.335 + 679.058 + 799.919 = $3,180 Mil.
Gross Profit was 474.756 + 516.656 + 359.483 + 472.155 = $1,823 Mil.
Average Total Assets from the begining of this year (May13)
to the end of this year (May14) was
(2392.954 + 2997.947 + 2463.03 + 2531.43 + 2530.858) / 5 = $2,583 Mil.
Total Assets was $2,531 Mil.
Long-Term Debt was $40 Mil.
Total Current Assets was $1,406 Mil.
Total Current Liabilities was $948 Mil.
Net Income was 75.448 + 133.495 + 13.527 + 79.953 = $302 Mil.

Revenue was 996.497 + 1055.183 + 834.372 + 946.774 = $3,833 Mil.
Gross Profit was 839.016 + 623.033 + 450.67 + 553.387 = $2,466 Mil.
Average Total Assets from the begining of last year (May12)
to the end of last year (May13) was
(2269.944 + 2868.322 + 2368.917 + 2340.064 + 2392.954) / 5 = $2,448 Mil.
Total Assets was $2,393 Mil.
Long-Term Debt was $68 Mil.
Total Current Assets was $1,532 Mil.
Total Current Liabilities was $973 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Apollo Education Group Inc's current net income (ttm) was 201. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Apollo Education Group Inc's current cash flow from operations (ttm) was 377. ==> 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 (TTM)/Average Total Assets from May13 to May14
=201.072/2583.2438
=0.07783702

ROA (Last Year)=Net Income (TTM)/Average Total Assets from May12 to May13
=302.423/2448.0402
=0.12353678

Apollo Education Group Inc's return on assets of this year was 0.07783702. Apollo Education Group Inc's return on assets of last year was 0.12353678. ==> 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.

Apollo Education Group Inc's current net income (ttm) was 201. Apollo Education Group Inc's current cash flow from operations (ttm) was 377. ==> 377 > 201 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

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

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

Gearing (This Year: May14)=Long-Term Debt/Total Assets
=39.756/2530.858
=0.01570851

Gearing (Last Year: May13)=Long-Term Debt/Total Assets
=67.578/2392.954
=0.02824041

Apollo Education Group Inc's gearing of this year was 0.01570851. Apollo Education Group Inc's gearing of last year was 0.02824041. ==> 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: May14)=Total Current Assets/Total Current Liabilities
=1406.409/948.087
=1.48341766

Current Ratio (Last Year: May13)=Total Current Assets/Total Current Liabilities
=1532.205/973.084
=1.57458657

Apollo Education Group Inc's current ratio of this year was 1.48341766. Apollo Education Group Inc's current ratio of last year was 1.57458657. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Apollo Education Group Inc's number of shares in issue this year was 112.1. Apollo Education Group Inc's number of shares in issue last year was 113.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=1823.05/3180.293
=0.57323335

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2466.106/3832.826
=0.64341715

Apollo Education Group Inc's gross margin of this year was 0.57323335. Apollo Education Group Inc's gross margin of last year was 0.64341715. ==> 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 average total assets throughout 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)/Average Total Assets from May13 to May14
=3180.293/2583.2438
=1.23112383

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from May12 to May13
=3832.826/2448.0402
=1.56567118

Apollo Education Group Inc's asset turnover of this year was 1.23112383. Apollo Education Group Inc's asset turnover of last year was 1.56567118. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Apollo Education Group 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, Altman Z-Score, Beneish M-Score


Historical Data

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

Apollo Education Group Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
Q1 1111111111
Q2 1111111111
Q3 1100110000
Q4 1111111111
Q5 0111000011
Q6 0000101101
Q7 1011111111
Q8 1100111000
Q9 1110011000
F-score 7765777556

Apollo Education Group Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Q1 1111111111
Q2 1111111111
Q3 1101000000
Q4 1111111111
Q5 1110111111
Q6 0000111100
Q7 1111110001
Q8 0001110000
Q9 0111110000
F-score 6767885545
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