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Big Lots Inc (NYSE:BIG)
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

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

BIG' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Big Lots Inc was 8. 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 (Jan15) TTM:Last Year (Jan14) TTM:
Net Income was 3.348 + 19.938 + -3.441 + 94.431 = $114 Mil.
Cash Flow from Operations was 102.166 + 55.003 + -94.791 + 256.184 = $319 Mil.
Revenue was 1281.271 + 1195.363 + 1107.095 + 1593.349 = $5,177 Mil.
Gross Profit was 493.556 + 469.527 + 430.942 + 649.929 = $2,044 Mil.
Average Total Assets from the begining of this year (Jan14)
to the end of this year (Jan15) was
(1739.599 + 1659.062 + 1642.392 + 1933.911 + 1635.891) / 5 = $1722.171 Mil.
Total Assets at the begining of this year (Jan14) was $1,740 Mil.
Long-Term Debt was $62 Mil.
Total Current Assets was $1,038 Mil.
Total Current Liabilities was $588 Mil.
Net Income was 32.333 + 18.126 + -9.517 + 84.353 = $125 Mil.

Revenue was 1267.02 + 1180.905 + 1104.918 + 1571.912 = $5,125 Mil.
Gross Profit was 502.195 + 464.115 + 431.428 + 609.631 = $2,007 Mil.
Average Total Assets from the begining of last year (Jan13)
to the end of last year (Jan14) was
(1753.626 + 1736.763 + 1801.311 + 2134.746 + 1739.599) / 5 = $1833.209 Mil.
Total Assets at the begining of last year (Jan13) was $1,754 Mil.
Long-Term Debt was $77 Mil.
Total Current Assets was $1,121 Mil.
Total Current Liabilities was $577 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.

Big Lots Inc's current net income (TTM) was 114. ==> 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.

Big Lots Inc's current cash flow from operations (TTM) was 319. ==> 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 (Jan14)
=114.276/1739.599
=0.065691

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=125.295/1753.626
=0.0714491

Big Lots Inc's return on assets of this year was 0.065691. Big Lots Inc's return on assets of last year was 0.0714491. ==> 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.

Big Lots Inc's current net income (TTM) was 114. Big Lots Inc's current cash flow from operations (TTM) was 319. ==> 319 > 114 ==> 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
=62.1/1722.171
=0.03605914

Gearing (Last Year: Jan14)=Long-Term Debt/Average Total Assets from Jan13 to Jan14
=77/1833.209
=0.04200285

Big Lots Inc's gearing of this year was 0.03605914. Big Lots Inc's gearing of last year was 0.04200285. ==> 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
=1038.429/587.829
=1.76654946

Current Ratio (Last Year: Jan14)=Total Current Assets/Total Current Liabilities
=1121.061/577.447
=1.94140934

Big Lots Inc's current ratio of this year was 1.76654946. Big Lots Inc's current ratio of last year was 1.94140934. ==> 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.

Big Lots Inc's number of shares in issue this year was 53.5. Big Lots Inc's number of shares in issue last year was 58. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=2043.954/5177.078
=0.39480842

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2007.369/5124.755
=0.39170048

Big Lots Inc's gross margin of this year was 0.39480842. Big Lots Inc's gross margin of last year was 0.39170048. ==> 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 (Jan14)
=5177.078/1739.599
=2.97601804

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=5124.755/1753.626
=2.92237626

Big Lots Inc's asset turnover of this year was 2.97601804. Big Lots Inc's asset turnover of last year was 2.92237626. ==> 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+1+1+1
=7

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

Big Lots 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.

Big Lots Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Question 1 0111111111
Question 2 1111111111
Question 3 0111100000
Question 4 1111111111
Question 5 1101110011
Question 6 0100100110
Question 7 1111011111
Question 8 0101110001
Question 9 1101101101
F-score 5958865667

Big Lots Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
Question 1 1111111111
Question 2 1111111111
Question 3 0000000000
Question 4 1111111111
Question 5 0001111111
Question 6 1111111000
Question 7 1111101111
Question 8 0000100001
Question 9 0110000001
F-score 5666756557
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