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C.H. Robinson Worldwide Inc (NAS:CHRW)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

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

C.H. Robinson Worldwide Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

CHRW' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of C.H. Robinson Worldwide Inc was 9. The lowest was 3. And the median was 7.


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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 106.476 + 137.208 + 139.432 + 126.583 = $510 Mil.
Cash Flow from Operations was 100.395 + 150.801 + 213.247 + 253.893 = $718 Mil.
Revenue was 3300.89 + 3545.088 + 3419.253 + 3210.853 = $13,476 Mil.
Gross Profit was 525.11 + 584.018 + 588.575 + 570.777 = $2,268 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(3214.338 + 3309.224 + 3404.014 + 3312.565 + 3184.358) / 5 = $3284.8998 Mil.
Total Assets at the begining of this year (Dec14) was $3,214 Mil.
Long-Term Debt was $500 Mil.
Total Current Assets was $1,731 Mil.
Total Current Liabilities was $1,449 Mil.
Net Income was 93.187 + 118.596 + 124.981 + 112.947 = $450 Mil.

Revenue was 3142.585 + 3502.918 + 3467.362 + 3357.202 = $13,470 Mil.
Gross Profit was 457.235 + 521.037 + 527.564 + 501.816 = $2,008 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(2802.818 + 2960.168 + 3037.106 + 2941.784 + 3214.338) / 5 = $2991.2428 Mil.
Total Assets at the begining of last year (Dec13) was $2,803 Mil.
Long-Term Debt was $500 Mil.
Total Current Assets was $2,105 Mil.
Total Current Liabilities was $1,576 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.

C.H. Robinson Worldwide Inc's current net income (TTM) was 510. ==> 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.

C.H. Robinson Worldwide Inc's current cash flow from operations (TTM) was 718. ==> 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.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Dec14)
=509.699/3214.338
=0.15857044

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=449.711/2802.818
=0.16044959

C.H. Robinson Worldwide Inc's return on assets of this year was 0.15857044. C.H. Robinson Worldwide Inc's return on assets of last year was 0.16044959. ==> Last year is higher ==> Score 0.

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.

C.H. Robinson Worldwide Inc's current net income (TTM) was 510. C.H. Robinson Worldwide Inc's current cash flow from operations (TTM) was 718. ==> 718 > 510 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=500/3284.8998
=0.15221164

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=500/2991.2428
=0.1671546

C.H. Robinson Worldwide Inc's gearing of this year was 0.15221164. C.H. Robinson Worldwide Inc's gearing of last year was 0.1671546. ==> This year is lower or equal to last year. ==> Score 1.

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: Dec15)=Total Current Assets/Total Current Liabilities
=1730.698/1448.597
=1.19474084

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=2105.459/1575.86
=1.33606983

C.H. Robinson Worldwide Inc's current ratio of this year was 1.19474084. C.H. Robinson Worldwide Inc's current ratio of last year was 1.33606983. ==> Last year's current ratio is higher ==> Score 0.

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.

C.H. Robinson Worldwide Inc's number of shares in issue this year was 145.3. C.H. Robinson Worldwide Inc's number of shares in issue last year was 147.5. ==> 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
=2268.48/13476.084
=0.16833377

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2007.652/13470.067
=0.14904544

C.H. Robinson Worldwide Inc's gross margin of this year was 0.16833377. C.H. Robinson Worldwide Inc's gross margin of last year was 0.14904544. ==> 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 (Dec14)
=13476.084/3214.338
=4.19249127

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=13470.067/2802.818
=4.80590142

C.H. Robinson Worldwide Inc's asset turnover of this year was 4.19249127. C.H. Robinson Worldwide Inc's asset turnover of last year was 4.80590142. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+1+0
=6

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

C.H. Robinson Worldwide Inc has an F-score of 6 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.

C.H. Robinson Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 1101111010
Question 4 1011000011
Question 5 1111111011
Question 6 1110100010
Question 7 0111111111
Question 8 1101000011
Question 9 0010111010
F-score 7777766396

C.H. Robinson Worldwide Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 0000111101
Question 4 0111111111
Question 5 0001111111
Question 6 0001100001
Question 7 1111111111
Question 8 0001111111
Question 9 0000111100
F-score 3447988868
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