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Carnival Corp (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 Corp has an F-score of 4 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 Corp was 9. 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 (May14) TTM:Last Year (May13) TTM:
Net Income was 934 + 66 + -15 + 106 = $1,091 Mil.
Cash Flow from Operations was 803 + 475 + 477 + 1196 = $2,951 Mil.
Revenue was 4726 + 3658 + 3585 + 3633 = $15,602 Mil.
Gross Profit was 1809 + 1037 + 997 + 1068 = $4,911 Mil.
Average Total Assets from the begining of this year (May13)
to the end of this year (May14) was
(39979 + 40393 + 40104 + 39905 + 40526) / 5 = $40,181 Mil.
Total Assets was $40,526 Mil.
Long-Term Debt was $7,880 Mil.
Total Current Assets was $1,625 Mil.
Total Current Liabilities was $7,401 Mil.
Net Income was 1330 + 93 + 37 + 41 = $1,501 Mil.

Revenue was 4684 + 3578 + 3593 + 3479 = $15,334 Mil.
Gross Profit was 2087 + 1027 + 994 + 992 = $5,100 Mil.
Average Total Assets from the begining of last year (May12)
to the end of last year (May13) was
(39462 + 39082 + 39161 + 38675 + 39979) / 5 = $39,272 Mil.
Total Assets was $39,979 Mil.
Long-Term Debt was $7,848 Mil.
Total Current Assets was $2,324 Mil.
Total Current Liabilities was $8,055 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.

Carnival Corp's current net income (ttm) was 1,091. ==> 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.

Carnival Corp's current cash flow from operations (ttm) was 2,951. ==> 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 May13 to May14
=1091/40181.4
=0.02715187

ROA (Last Year)=Net Income (TTM)/Average Total Assets from May12 to May13
=1501/39271.8
=0.03822081

Carnival Corp's return on assets of this year was 0.02715187. Carnival Corp's return on assets of last year was 0.03822081. ==> 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 Corp's current net income (ttm) was 1,091. Carnival Corp's current cash flow from operations (ttm) was 2,951. ==> 2,951 > 1,091 ==> CFROA > ROA ==> Score 1.

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: May14)=Long-Term Debt/Total Assets
=7880/40526
=0.19444307

Gearing (Last Year: May13)=Long-Term Debt/Total Assets
=7848/39979
=0.19630306

Carnival Corp's gearing of this year was 0.19444307. Carnival Corp's gearing of last year was 0.19630306. ==> 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: May14)=Total Current Assets/Total Current Liabilities
=1625/7401
=0.21956492

Current Ratio (Last Year: May13)=Total Current Assets/Total Current Liabilities
=2324/8055
=0.28851645

Carnival Corp's current ratio of this year was 0.21956492. Carnival Corp's current ratio of last year was 0.28851645. ==> 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.

Carnival Corp's number of shares in issue this year was 778. Carnival Corp's number of shares in issue last year was 777. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=4911/15602
=0.31476734

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5100/15334
=0.33259424

Carnival Corp's gross margin of this year was 0.31476734. Carnival Corp's gross margin of last year was 0.33259424. ==> Last year's gross margin is higher ==> Score 0.

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 May13 to May14
=15602/40181.4
=0.38828911

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from May12 to May13
=15334/39271.8
=0.39045829

Carnival Corp's asset turnover of this year was 0.38828911. Carnival Corp's asset turnover of last year was 0.39045829. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+1+0+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Carnival Corp has an F-score of 4 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.

Carnival Corp Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Q1 1111111111
Q2 1111111111
Q3 1101001000
Q4 1111111111
Q5 0101001110
Q6 0100110011
Q7 0010110111
Q8 1100000000
Q9 1111101100
F-score 6856656665

Carnival Corp Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
Q1 1111111111
Q2 1111111111
Q3 0000010000
Q4 1111111111
Q5 1101111001
Q6 1111001100
Q7 1110111110
Q8 0000000000
Q9 1100000000
F-score 7655567555
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