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

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

BIG' s Piotroski F-Score Range Over the Past 10 Years
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 (Jul16) TTM:Last Year (Jul15) TTM:
Net Income was -1.508 + 94.532 + 38.659 + 22.715 = $154 Mil.
Cash Flow from Operations was -64.345 + 290.034 + 78.611 + 32.889 = $337 Mil.
Revenue was 1116.474 + 1583.967 + 1312.575 + 1203.155 = $5,216 Mil.
Gross Profit was 440.007 + 647.229 + 517.681 + 486.423 = $2,091 Mil.
Average Total Assets from the begining of this year (Jul15)
to the end of this year (Jul16) was
(1664.363 + 1889.297 + 1640.37 + 1606.621 + 1624.66) / 5 = $1685.0622 Mil.
Total Assets at the begining of this year (Jul15) was $1,664 Mil.
Long-Term Debt was $258 Mil.
Total Current Assets was $977 Mil.
Total Current Liabilities was $646 Mil.
Net Income was -3.441 + 94.431 + 32.213 + 17.636 = $141 Mil.

Revenue was 1107.095 + 1593.349 + 1280.455 + 1209.686 = $5,191 Mil.
Gross Profit was 430.942 + 649.929 + 504.116 + 475.834 = $2,061 Mil.
Average Total Assets from the begining of last year (Jul14)
to the end of last year (Jul15) was
(1642.392 + 1933.911 + 1635.891 + 1648.812 + 1664.363) / 5 = $1705.0738 Mil.
Total Assets at the begining of last year (Jul14) was $1,642 Mil.
Long-Term Debt was $223 Mil.
Total Current Assets was $1,029 Mil.
Total Current Liabilities was $595 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 154. ==> 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 337. ==> 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 (Jul15)
=154.398/1664.363
=0.09276702

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jul14)
=140.839/1642.392
=0.08575237

Big Lots Inc's return on assets of this year was 0.09276702. Big Lots Inc's return on assets of last year was 0.08575237. ==> This year is higher. ==> Score 1.

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 154. Big Lots Inc's current cash flow from operations (TTM) was 337. ==> 337 > 154 ==> 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: Jul16)=Long-Term Debt/Average Total Assets from Jul15 to Jul16
=257.9/1685.0622
=0.15305073

Gearing (Last Year: Jul15)=Long-Term Debt/Average Total Assets from Jul14 to Jul15
=223.2/1705.0738
=0.13090342

Big Lots Inc's gearing of this year was 0.15305073. Big Lots Inc's gearing of last year was 0.13090342. ==> Last year is lower than this year ==> Score 0.

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: Jul16)=Total Current Assets/Total Current Liabilities
=977.043/645.755
=1.51302429

Current Ratio (Last Year: Jul15)=Total Current Assets/Total Current Liabilities
=1028.734/594.854
=1.72938906

Big Lots Inc's current ratio of this year was 1.51302429. Big Lots Inc's current ratio of last year was 1.72938906. ==> 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 45. Big Lots Inc's number of shares in issue last year was 51.3. ==> 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
=2091.34/5216.171
=0.40093394

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2060.821/5190.585
=0.39703059

Big Lots Inc's gross margin of this year was 0.40093394. Big Lots Inc's gross margin of last year was 0.39703059. ==> 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 (Jul15)
=5216.171/1664.363
=3.13403446

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jul14)
=5190.585/1642.392
=3.16038132

Big Lots Inc's asset turnover of this year was 3.13403446. Big Lots Inc's asset turnover of last year was 3.16038132. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+0
=6

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

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


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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Question 1 1111111111
Question 2 1111111111
Question 3 1111000001
Question 4 1111111111
Question 5 1011100110
Question 6 1001001100
Question 7 1110111111
Question 8 1011100011
Question 9 1011010011
F-score 9588655677

Big Lots Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Question 1 1111111111
Question 2 1111111111
Question 3 0000111111
Question 4 1111111111
Question 5 1111100000
Question 6 1000001000
Question 7 1111111111
Question 8 0001111111
Question 9 0001111110
F-score 6557878776
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