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Bed Bath & Beyond Inc (NAS:BBBY)
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

Bed Bath & Beyond Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

BBBY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 4

3
9

During the past 13 years, the highest Piotroski F-Score of Bed Bath & Beyond Inc was 9. 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 (Aug14) TTM:Last Year (Aug13) TTM:
Net Income was 237.197 + 333.299 + 187.052 + 223.953 = $982 Mil.
Cash Flow from Operations was 106.341 + 781.25 + 186.93 + 367.56 = $1,442 Mil.
Revenue was 2864.837 + 3203.314 + 2656.698 + 2944.905 = $11,670 Mil.
Gross Profit was 1121.69 + 1297.437 + 1030.885 + 1134.045 = $4,584 Mil.
Average Total Assets from the begining of this year (Aug13)
to the end of this year (Aug14) was
(6307.973 + 6544.489 + 6356.033 + 6362.328 + 7034.26) / 5 = $6,521 Mil.
Total Assets was $7,034 Mil.
Long-Term Debt was $1,500 Mil.
Total Current Assets was $4,480 Mil.
Total Current Liabilities was $2,007 Mil.
Net Income was 232.75 + 373.872 + 202.49 + 249.304 = $1,058 Mil.

Revenue was 2701.801 + 3401.477 + 2612.14 + 2823.672 = $11,539 Mil.
Gross Profit was 1074.01 + 1394.877 + 1032.971 + 1113.484 = $4,615 Mil.
Average Total Assets from the begining of last year (Aug12)
to the end of last year (Aug13) was
(6107.482 + 6386.836 + 6279.952 + 6312.648 + 6307.973) / 5 = $6,279 Mil.
Total Assets was $6,308 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $3,864 Mil.
Total Current Liabilities was $1,706 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.

Bed Bath & Beyond Inc's current net income (ttm) was 982. ==> 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.

Bed Bath & Beyond Inc's current cash flow from operations (ttm) was 1,442. ==> 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 Aug13 to Aug14
=981.501/6521.0166
=0.1505135

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Aug12 to Aug13
=1058.416/6278.9782
=0.16856501

Bed Bath & Beyond Inc's return on assets of this year was 0.1505135. Bed Bath & Beyond Inc's return on assets of last year was 0.16856501. ==> 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.

Bed Bath & Beyond Inc's current net income (ttm) was 982. Bed Bath & Beyond Inc's current cash flow from operations (ttm) was 1,442. ==> 1,442 > 982 ==> 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: Aug14)=Long-Term Debt/Total Assets
=1500/7034.26
=0.21324205

Gearing (Last Year: Aug13)=Long-Term Debt/Total Assets
=0/6307.973
=0

Bed Bath & Beyond Inc's gearing of this year was 0.21324205. Bed Bath & Beyond Inc's gearing of last year was 0. ==> Last year is lower than this year ==> Score 0.

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: Aug14)=Total Current Assets/Total Current Liabilities
=4479.768/2006.898
=2.23218519

Current Ratio (Last Year: Aug13)=Total Current Assets/Total Current Liabilities
=3864.461/1706.295
=2.26482584

Bed Bath & Beyond Inc's current ratio of this year was 2.23218519. Bed Bath & Beyond Inc's current ratio of last year was 2.26482584. ==> 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.

Bed Bath & Beyond Inc's number of shares in issue this year was 191.5. Bed Bath & Beyond Inc's number of shares in issue last year was 214.7. ==> 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
=4584.057/11669.754
=0.39281522

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4615.342/11539.09
=0.39997452

Bed Bath & Beyond Inc's gross margin of this year was 0.39281522. Bed Bath & Beyond Inc's gross margin of last year was 0.39997452. ==> 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 Aug13 to Aug14
=11669.754/6521.0166
=1.78956054

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Aug12 to Aug13
=11539.09/6278.9782
=1.83773373

Bed Bath & Beyond Inc's asset turnover of this year was 1.78956054. Bed Bath & Beyond Inc's asset turnover of last year was 1.83773373. ==> 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+0+0+1+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Bed Bath & Beyond Inc 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, 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.

Bed Bath & Beyond Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Q1 1111111111
Q2 1111111111
Q3 1100011100
Q4 1111111111
Q5 1111101111
Q6 0010110100
Q7 0111101111
Q8 1110011100
Q9 1011000110
F-score 7786667965

Bed Bath & Beyond Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
Q1 1111111111
Q2 1111111111
Q3 1110000000
Q4 1111111111
Q5 1111111110
Q6 0000001000
Q7 1111111111
Q8 0000000000
Q9 1111111100
F-score 7776667654
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