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Consumer Portfolio Services Inc (NAS:CPSS)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Consumer Portfolio Services Inc has an F-score of 4 indicating the company's financial situation is typical for a stable company.

CPSS' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 4

2
7

During the past 13 years, the highest Piotroski F-Score of Consumer Portfolio Services Inc was 7. The lowest was 2. And the median was 4.


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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 6.705 + 6.522 + 5.873 + 4.825 = $23.9 Mil.
Cash Flow from Operations was 36.155 + 28.22 + 30.779 + 19.328 = $114.5 Mil.
Revenue was 54.765 + 53.255 + 50.213 + 55.881 = $214.1 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.0 Mil.
Total Assets at the begining of this year (Mar13) was $1,145.3 Mil.
Total Assets was $1,459.9 Mil.
Long-Term Debt was $1,290.1 Mil.
Total Current Assets was $0.0 Mil.
Total Current Liabilities was $0.0 Mil.
Net Income was 3.785 + 64.828 + 2.728 + 1.341 = $72.7 Mil.

Revenue was 38.248 + 32.894 + 28.36 + 24.324 = $123.8 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0.0 Mil.
Total Assets at the begining of last year (Mar12) was $867.3 Mil.
Total Assets was $1,145.3 Mil.
Long-Term Debt was $925.2 Mil.
Total Current Assets was $0.0 Mil.
Total Current Liabilities was $0.0 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.

Consumer Portfolio Services Inc's current net income was 23.9. ==> 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.

Consumer Portfolio Services Inc's current cash flow from operations was 114.5. ==> 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 (Mar13)
=23.925/1145.316
=0.02088943

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=72.682/867.327
=0.0838

Consumer Portfolio Services Inc's return on assets of this year was 0.02088943. Consumer Portfolio Services Inc's return on assets of last year was 0.0838. ==> 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.

Consumer Portfolio Services Inc's current net income was 23.9. Consumer Portfolio Services Inc's current cash flow from operations was 114.5. ==> 114.5 > 23.9 ==> 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
=1290.123/1459.949
=0.88367676

Gearing (Last Year)=Long-Term Debt/Total Assets
=925.237/1145.316
=0.8078443

Consumer Portfolio Services Inc's gearing of this year was 0.88367676. Consumer Portfolio Services Inc's gearing of last year was 0.8078443. ==> 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
=0/0
=

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=0/0
=

Consumer Portfolio Services Inc's current ratio of this year was . Consumer Portfolio Services Inc's current ratio of last year was . ==> 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.

Consumer Portfolio Services Inc's number of shares in issue this year was 32. Consumer Portfolio Services Inc's number of shares in issue last year was 31.6. ==> There is more 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)=Gross Profit/Revenue
=0/214.114
=0

Gross Margin (Last Year)=Gross Profit/Revenue
=0/123.826
=0

Consumer Portfolio Services Inc's gross margin of this year was 0. Consumer Portfolio Services Inc's gross margin of last year was 0. ==> 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 (Mar13)
=214.114/1145.316
=0.18694753

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=123.826/867.327
=0.14276738

Consumer Portfolio Services Inc's asset turnover of this year was 0.18694753. Consumer Portfolio Services Inc's asset turnover of last year was 0.14276738. ==> 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+0+0+1
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Consumer Portfolio Services Inc 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


Historical Data

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

Consumer Portfolio Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 0111000011
Q2 1111111111
Q3 0110001110
Q4 1111111101
Q5 0011000100
Q6 0000000000
Q7 1001111000
Q8 0000000000
Q9 0000001111
F-score 3455335544

Consumer Portfolio Services Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 0001111111
Q2 1111111111
Q3 1111111100
Q4 1111000111
Q5 1110001100
Q6 0000000000
Q7 0000000000
Q8 0000000000
Q9 1111111111
F-score 5555445644
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