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BlackRock Inc (NYSE:BLK)
Piotroski F-Score
0 (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

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

BLK' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 0

4
8

During the past 13 years, the highest Piotroski F-Score of BlackRock Inc was 8. The lowest was 4. And the median was 5.


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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 756 + 808 + 917 + 813 = $3,294 Mil.
Cash Flow from Operations was -206 + 732 + 1284 + 0 = $1,810 Mil.
Revenue was 2670 + 2778 + 2849 + 2784 = $11,081 Mil.
Gross Profit was 2581 + 2689 + 2759 + 2688 = $10,717 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(219873 + 216297 + 231693 + 222812 + 0) / 5 = $178135 Mil.
Total Assets at the begining of this year (Dec13) was $219,873 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 632 + 729 + 730 + 841 = $2,932 Mil.

Revenue was 2449 + 2482 + 2472 + 2777 = $10,180 Mil.
Gross Profit was 2358 + 2392 + 2387 + 2690 = $9,827 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(200451 + 200738 + 193745 + 212717 + 219873) / 5 = $205504.8 Mil.
Total Assets at the begining of last year (Dec12) was $200,451 Mil.
Long-Term Debt was $7,308 Mil.
Total Current Assets was $6,798 Mil.
Total Current Liabilities was $2,831 Mil.

Profitability

Q1. 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.

BlackRock Inc's current net income (TTM) was 3,294. ==> Positive ==> Score 1.

Q2. 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.

BlackRock Inc's current cash flow from operations (TTM) was 1,810. ==> 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)/Total Assets at the Beginning of This Year (Dec13)
=3294/219873
=0.01498138

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=2932/200451
=0.01462702

BlackRock Inc's return on assets of this year was 0.01498138. BlackRock Inc's return on assets of last year was 0.01462702. ==> This year is higher. ==> Score 1.

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.

BlackRock Inc's current net income (TTM) was 3,294. BlackRock Inc's current cash flow from operations (TTM) was 1,810. ==> 1,810 <= 3,294 ==> CFROA <= ROA ==> Score 0.

Funding

Q5. 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=0/178135
=0

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=7308/205504.8
=0.03556121

BlackRock Inc's gearing of this year was 0. BlackRock Inc's gearing of last year was 0.03556121. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=0/0
=

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=6798/2831
=2.40127164

BlackRock Inc's current ratio of this year was . BlackRock Inc's current ratio of last year was 2.40127164. ==> 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.

BlackRock Inc's number of shares in issue this year was 170.4. BlackRock Inc's number of shares in issue last year was 173.3. ==> 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
=10717/11081
=0.96715098

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=9827/10180
=0.96532417

BlackRock Inc's gross margin of this year was 0.96715098. BlackRock Inc's gross margin of last year was 0.96532417. ==> This year's gross margin is higher. ==> Score 1.

Q9. 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 (Dec13)
=11081/219873
=0.05039727

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=10180/200451
=0.05078548

BlackRock Inc's asset turnover of this year was 0.05039727. BlackRock Inc's asset turnover of last year was 0.05078548. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

BlackRock 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.

BlackRock Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Q1 111111111
Q2 111111111
Q3 100010111
Q4 110111101
Q5 011011001
Q6 000101110
Q7 000100111
Q8 001101111
Q9 110010110
F-score 554666877

BlackRock Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Q1 111111111
Q2 111111111
Q3 011111111
Q4 101111100
Q5 000001100
Q6 011110101
Q7 111111111
Q8 111111111
Q9 011100111
F-score 5788779670
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