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Carnival Corporation (NYSE:CCL)
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

Carnival Corporation has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CCL' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of Carnival Corporation was 9. The lowest was 4. 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 (Feb14) TTM:Last Year (Feb13) TTM:
Net Income was -15 + 66 + 934 + 41 = $1,026 Mil.
Cash Flow from Operations was 477 + 475 + 803 + 1157 = $2,912 Mil.
Revenue was 3585 + 3658 + 4726 + 3479 = $15,448 Mil.
Gross Profit was 997 + 1037 + 1809 + 992 = $4,835 Mil.
Total Assets at the begining of this year (Feb13) was $38,675 Mil.
Total Assets was $39,905 Mil.
Long-Term Debt was $7,992 Mil.
Total Current Assets was $1,645 Mil.
Total Current Liabilities was $6,688 Mil.
Net Income was 37 + 93 + 1330 + 14 = $1,474 Mil.

Revenue was 3593 + 3578 + 4684 + 3538 = $15,393 Mil.
Gross Profit was 994 + 1027 + 2087 + 1060 = $5,168 Mil.
Total Assets at the begining of last year (Feb12) was $38,963 Mil.
Total Assets was $38,675 Mil.
Long-Term Debt was $7,622 Mil.
Total Current Assets was $1,792 Mil.
Total Current Liabilities was $6,782 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.

Carnival Corporation's current net income was 1,026. ==> 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.

Carnival Corporation's current cash flow from operations was 2,912. ==> 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 (Feb13)
=1026/38675
=0.02652877

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Feb12)
=1474/38963
=0.03783076

Carnival Corporation's return on assets of this year was 0.02652877. Carnival Corporation's return on assets of last year was 0.03783076. ==> Last year is higher ==> Score 0.

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.

Carnival Corporation's current net income was 1,026. Carnival Corporation's current cash flow from operations was 2,912. ==> 2,912 > 1,026 ==> 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
=7992/39905
=0.20027565

Gearing (Last Year)=Long-Term Debt/Total Assets
=7622/38675
=0.19707822

Carnival Corporation's gearing of this year was 0.20027565. Carnival Corporation's gearing of last year was 0.19707822. ==> Last year is lower ==> 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)=Total Current Assets/Total Current Liabilities
=1645/6688
=0.24596292

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=1792/6782
=0.26422884

Carnival Corporation's current ratio of this year was 0.24596292. Carnival Corporation's current ratio of last year was 0.26422884. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Carnival Corporation's number of shares in issue this year was 776. Carnival Corporation's number of shares in issue last year was 778. ==> 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
=4835/15448
=0.3129855

Gross Margin (Last Year)=Gross Profit/Revenue
=5168/15393
=0.33573702

Carnival Corporation's gross margin of this year was 0.3129855. Carnival Corporation's gross margin of last year was 0.33573702. ==> Last year's gross margin is higher ==> Score 0.

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 (Feb13)
=15448/38675
=0.39943116

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Feb12)
=15393/38963
=0.39506711

Carnival Corporation's asset turnover of this year was 0.39943116. Carnival Corporation's asset turnover of last year was 0.39506711. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+0+1+0+1
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Carnival Corporation 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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Carnival Corporation Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Q1 1111111111
Q2 1111111111
Q3 0100001000
Q4 1111111111
Q5 0101001110
Q6 0100110011
Q7 0010110111
Q8 1100000000
Q9 0111100100
F-score 4855655665

Carnival Corporation Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
Q1 1111111111
Q2 1111111111
Q3 0000001000
Q4 1111111111
Q5 1110111100
Q6 0111100110
Q7 1111001111
Q8 0000000000
Q9 1100000101
F-score 6765546755
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