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BlackRock Inc (NYSE:BLK)
Piotroski F-Score
9 (As of Today)

Good Sign:

Piotroski F-Score of 9 is 9, indicating very healthy situation.

The zones of discrimination were as such:

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

BlackRock Inc has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

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

3
9

During the past 13 years, the highest Piotroski F-Score of BlackRock Inc was 9. The lowest was 3. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 756 + 841 + 730 + 729 = $3,056 Mil.
Cash Flow from Operations was -206 + 1166 + 1146 + 1140 = $3,246 Mil.
Revenue was 2670 + 2777 + 2472 + 2482 = $10,401 Mil.
Gross Profit was 2581 + 2690 + 2387 + 2392 = $10,050 Mil.
Total Assets at the begining of this year (Mar13) was $200,738 Mil.
Total Assets was $216,297 Mil.
Long-Term Debt was $8,180 Mil.
Total Current Assets was $7,453 Mil.
Total Current Liabilities was $2,283 Mil.
Net Income was 632 + 690 + 642 + 554 = $2,518 Mil.

Revenue was 2449 + 2539 + 2320 + 2229 = $9,537 Mil.
Gross Profit was 2358 + 2457 + 2226 + 2136 = $9,177 Mil.
Total Assets at the begining of last year (Mar12) was $185,518 Mil.
Total Assets was $200,738 Mil.
Long-Term Debt was $8,019 Mil.
Total Current Assets was $6,850 Mil.
Total Current Liabilities was $2,259 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 was 3,056. ==> 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 was 3,246. ==> 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/Total Assets at the beginning of this year (Mar13)
=3056/200738
=0.01522382

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=2518/185518
=0.01357281

BlackRock Inc's return on assets of this year was 0.01522382. BlackRock Inc's return on assets of last year was 0.01357281. ==> 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 was 3,056. BlackRock Inc's current cash flow from operations was 3,246. ==> 3,246 > 3,056 ==> CFROA > ROA ==> Score 1.

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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=8180/216297
=0.03781837

Gearing (Last Year)=Long-Term Debt/Total Assets
=8019/200738
=0.03994759

BlackRock Inc's gearing of this year was 0.03781837. BlackRock Inc's gearing of last year was 0.03994759. ==> This year is lower. ==> 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)=Total Current Assets/Total Current Liabilities
=7453/2283
=3.26456417

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=6850/2259
=3.03231518

BlackRock Inc's current ratio of this year was 3.26456417. BlackRock Inc's current ratio of last year was 3.03231518. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

BlackRock Inc's number of shares in issue this year was 171.9. BlackRock Inc's number of shares in issue last year was 174.6. ==> There is the same number of shares in issue this year, or fewer. ==> 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)=Gross Profit/Revenue
=10050/10401
=0.96625324

Gross Margin (Last Year)=Gross Profit/Revenue
=9177/9537
=0.96225228

BlackRock Inc's gross margin of this year was 0.96625324. BlackRock Inc's gross margin of last year was 0.96225228. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales 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/Total Assets at the beginning of this year (Mar13)
=10401/200738
=0.05181381

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=9537/185518
=0.05140741

BlackRock Inc's asset turnover of this year was 0.05181381. BlackRock Inc's asset turnover of last year was 0.05140741. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+1+1+1
=9

Good or high score = 8 or 9

Bad or low score = 0 or 1

BlackRock Inc has an F-score of 9. 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.

BlackRock Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0100010111
Q4 1110111101
Q5 0010010001
Q6 0000101110
Q7 0000100111
Q8 0001101111
Q9 1110010110
F-score 4553665877

BlackRock Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1000111111
Q4 1111011111
Q5 0000000011
Q6 1000111101
Q7 1111111111
Q8 1111111111
Q9 1000111001
F-score 8555788779
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