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

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 5 indicating the company's financial situation is typical for a stable company.

BLK' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 5

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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 730 + 841 + 756 + 808 = $3,135 Mil.
Cash Flow from Operations was 1146 + 1166 + -206 + 732 = $2,838 Mil.
Revenue was 2472 + 2777 + 2670 + 2778 = $10,697 Mil.
Gross Profit was 2387 + 2690 + 2581 + 2689 = $10,347 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(193745 + 212717 + 219873 + 216297 + 231693) / 5 = $214,865 Mil.
Total Assets was $231,693 Mil.
Long-Term Debt was $8,635 Mil.
Total Current Assets was $9,704 Mil.
Total Current Liabilities was $4,170 Mil.
Net Income was 642 + 690 + 632 + 729 = $2,693 Mil.

Revenue was 2320 + 2539 + 2449 + 2482 = $9,790 Mil.
Gross Profit was 2226 + 2457 + 2358 + 2392 = $9,433 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(182480 + 192828 + 200451 + 200738 + 193745) / 5 = $194,048 Mil.
Total Assets was $193,745 Mil.
Long-Term Debt was $7,083 Mil.
Total Current Assets was $6,042 Mil.
Total Current Liabilities was $2,219 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.

BlackRock Inc's current net income (ttm) was 3,135. ==> 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.

BlackRock Inc's current cash flow from operations (ttm) was 2,838. ==> 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 Jun13 to Jun14
=3135/214865
=0.01459056

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=2693/194048.4
=0.01387798

BlackRock Inc's return on assets of this year was 0.01459056. BlackRock Inc's return on assets of last year was 0.01387798. ==> 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 3,135. BlackRock Inc's current cash flow from operations (ttm) was 2,838. ==> 2,838 =< 3,135 ==> CFROA =< ROA ==> Score 0.

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: Jun14)=Long-Term Debt/Total Assets
=8635/231693
=0.03726914

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=7083/193745
=0.03655836

BlackRock Inc's gearing of this year was 0.03726914. BlackRock Inc's gearing of last year was 0.03655836. ==> Last year is lower than this year ==> Score 0.

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: Jun14)=Total Current Assets/Total Current Liabilities
=9704/4170
=2.32709832

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=6042/2219
=2.72284813

BlackRock Inc's current ratio of this year was 2.32709832. BlackRock Inc's current ratio of last year was 2.72284813. ==> 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 171.2. BlackRock Inc's number of shares in issue last year was 173.9. ==> 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
=10347/10697
=0.96728055

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=9433/9790
=0.96353422

BlackRock Inc's gross margin of this year was 0.96728055. BlackRock Inc's gross margin of last year was 0.96353422. ==> 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 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 Jun13 to Jun14
=10697/214865
=0.04978475

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=9790/194048.4
=0.05045133

BlackRock Inc's asset turnover of this year was 0.04978475. BlackRock Inc's asset turnover of last year was 0.05045133. ==> 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+0+0+1+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

BlackRock Inc has an F-score of 5 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.

BlackRock Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0111001111
Q4 1110111101
Q5 0010010001
Q6 0000101110
Q7 0000100111
Q8 0001101111
Q9 1111101101
F-score 4565747868

BlackRock Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1001111111
Q4 1110111110
Q5 0000000110
Q6 0001111010
Q7 1111111111
Q8 1111111111
Q9 0000011010
F-score 6556788795
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