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Big Lots Inc (NYSE:BIG)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

Big Lots Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

BIG' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Big Lots Inc was 9. The lowest was 2. 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 (Jul14) TTM:Last Year (Jul13) TTM:
Net Income was -9.517 + 84.353 + 3.348 + 19.938 = $98 Mil.
Cash Flow from Operations was -153.116 + 269.432 + 102.166 + 55.003 = $273 Mil.
Revenue was 1152.444 + 1612.558 + 1281.271 + 1195.363 = $5,242 Mil.
Gross Profit was 443.459 + 625.763 + 493.556 + 469.527 = $2,032 Mil.
Average Total Assets from the begining of this year (Jul13)
to the end of this year (Jul14) was
(1801.311 + 2134.746 + 1739.599 + 1659.062 + 1642.392) / 5 = $1,795 Mil.
Total Assets was $1,642 Mil.
Long-Term Debt was $57 Mil.
Total Current Assets was $1,037 Mil.
Total Current Liabilities was $591 Mil.
Net Income was -5.987 + 120.287 + 32.333 + 18.126 = $165 Mil.

Revenue was 1134.205 + 1720.442 + 1267.02 + 1180.905 = $5,303 Mil.
Gross Profit was 432.59 + 689.455 + 502.195 + 464.115 = $2,088 Mil.
Average Total Assets from the begining of last year (Jul12)
to the end of last year (Jul13) was
(1725.645 + 2064.902 + 1753.626 + 1736.763 + 1801.311) / 5 = $1,816 Mil.
Total Assets was $1,801 Mil.
Long-Term Debt was $142 Mil.
Total Current Assets was $1,131 Mil.
Total Current Liabilities was $643 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.

Big Lots Inc's current net income (ttm) was 98. ==> 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.

Big Lots Inc's current cash flow from operations (ttm) was 273. ==> 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 Jul13 to Jul14
=98.122/1795.422
=0.05465122

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jul12 to Jul13
=164.759/1816.4494
=0.09070388

Big Lots Inc's return on assets of this year was 0.05465122. Big Lots Inc's return on assets of last year was 0.09070388. ==> 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.

Big Lots Inc's current net income (ttm) was 98. Big Lots Inc's current cash flow from operations (ttm) was 273. ==> 273 > 98 ==> 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: Jul14)=Long-Term Debt/Total Assets
=56.5/1642.392
=0.03440104

Gearing (Last Year: Jul13)=Long-Term Debt/Total Assets
=141.7/1801.311
=0.07866493

Big Lots Inc's gearing of this year was 0.03440104. Big Lots Inc's gearing of last year was 0.07866493. ==> 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: Jul14)=Total Current Assets/Total Current Liabilities
=1036.777/590.691
=1.75519349

Current Ratio (Last Year: Jul13)=Total Current Assets/Total Current Liabilities
=1131.362/643.476
=1.75820388

Big Lots Inc's current ratio of this year was 1.75519349. Big Lots Inc's current ratio of last year was 1.75820388. ==> 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.

Big Lots Inc's number of shares in issue this year was 55.7. Big Lots Inc's number of shares in issue last year was 57.9. ==> 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
=2032.305/5241.636
=0.38772341

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2088.355/5302.572
=0.39383812

Big Lots Inc's gross margin of this year was 0.38772341. Big Lots Inc's gross margin of last year was 0.39383812. ==> 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 Jul13 to Jul14
=5241.636/1795.422
=2.91944512

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jul12 to Jul13
=5302.572/1816.4494
=2.9191961

Big Lots Inc's asset turnover of this year was 2.91944512. Big Lots Inc's asset turnover of last year was 2.9191961. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+1+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Big Lots Inc has an F-score of 6 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.

Big Lots Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Q1 1011111111
Q2 1111111111
Q3 0011010000
Q4 1111111111
Q5 1110111001
Q6 0010010011
Q7 1111101111
Q8 0010111000
Q9 1100000110
F-score 6585676566

Big Lots Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111111111
Q2 1111111111
Q3 0000000000
Q4 1111111111
Q5 1000011111
Q6 0111111110
Q7 1111111011
Q8 0000001000
Q9 1110000001
F-score 6665567566
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