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Carnival Corp (NYSE:CCL)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

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

Carnival Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

CCL' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 8

3
8

During the past 13 years, the highest Piotroski F-Score of Carnival Corp was 8. The lowest was 3. 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 (Feb16) TTM:Last Year (Feb15) TTM:
Net Income was 222 + 1216 + 270 + 142 = $1,850 Mil.
Cash Flow from Operations was 1515 + 1281 + 978 + 798 = $4,572 Mil.
Revenue was 3590 + 4883 + 3711 + 3651 = $15,835 Mil.
Gross Profit was 1186 + 2393 + 1493 + 1408 = $6,480 Mil.
Average Total Assets from the begining of this year (Feb15)
to the end of this year (Feb16) was
(38714 + 38611 + 38797 + 39237 + 38446) / 5 = $38761 Mil.
Total Assets at the begining of this year (Feb15) was $38,714 Mil.
Long-Term Debt was $7,990 Mil.
Total Current Assets was $1,860 Mil.
Total Current Liabilities was $6,664 Mil.
Net Income was 106 + 1247 + -102 + 49 = $1,300 Mil.

Revenue was 3633 + 4947 + 3719 + 3531 = $15,830 Mil.
Gross Profit was 1068 + 2193 + 1222 + 1196 = $5,679 Mil.
Average Total Assets from the begining of last year (Feb14)
to the end of last year (Feb15) was
(39905 + 40526 + 39997 + 39532 + 38714) / 5 = $39734.8 Mil.
Total Assets at the begining of last year (Feb14) was $39,905 Mil.
Long-Term Debt was $6,944 Mil.
Total Current Assets was $1,426 Mil.
Total Current Liabilities was $7,412 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.

Carnival Corp's current net income (TTM) was 1,850. ==> 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.

Carnival Corp's current cash flow from operations (TTM) was 4,572. ==> 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.

Carnival Corp's return on assets of this year was 0.04778633. Carnival Corp's return on assets of last year was 0.03257737. ==> 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.

Carnival Corp's current net income (TTM) was 1,850. Carnival Corp's current cash flow from operations (TTM) was 4,572. ==> 4,572 > 1,850 ==> 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: Feb16)=Long-Term Debt/Average Total Assets from Feb15 to Feb16
=7990/38761
=0.20613503

Gearing (Last Year: Feb15)=Long-Term Debt/Average Total Assets from Feb14 to Feb15
=6944/39734.8
=0.17475865

Carnival Corp's gearing of this year was 0.20613503. Carnival Corp's gearing of last year was 0.17475865. ==> 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: Feb16)=Total Current Assets/Total Current Liabilities
=1860/6664
=0.27911164

Current Ratio (Last Year: Feb15)=Total Current Assets/Total Current Liabilities
=1426/7412
=0.19239072

Carnival Corp's current ratio of this year was 0.27911164. Carnival Corp's current ratio of last year was 0.19239072. ==> This year's current ratio is higher. ==> Score 1.

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.

Carnival Corp's number of shares in issue this year was 769. Carnival Corp's number of shares in issue last year was 779. ==> 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
=6480/15835
=0.40922008

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5679/15830
=0.35874921

Carnival Corp's gross margin of this year was 0.40922008. Carnival Corp's gross margin of last year was 0.35874921. ==> 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 (Feb15)
=15835/38714
=0.40902516

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Feb14)
=15830/39905
=0.39669214

Carnival Corp's asset turnover of this year was 0.40902516. Carnival Corp's asset turnover of last year was 0.39669214. ==> This year's asset turnover is higher. ==> Score 1.

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+1+1+1+1
=8

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

Carnival Corp has an F-score of 8. 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.

Carnival Corp Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
Question 1 1111111111
Question 2 1111111111
Question 3 0000100011
Question 4 1111111111
Question 5 0100111010
Question 6 0011001101
Question 7 1011011100
Question 8 0001000011
Question 9 1110010011
F-score 5566566577

Carnival Corp Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
Question 1 1111111111
Question 2 1111111111
Question 3 0001111011
Question 4 1111111111
Question 5 0011111100
Question 6 1000000111
Question 7 1100000001
Question 8 0001111111
Question 9 0110100111
F-score 5556766778
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