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Crown Crafts Inc (NAS:CRWS)
Piotroski F-Score
5 (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

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

CRWS' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Crown Crafts Inc was 8. The lowest was 2. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 1.779 + 2.028 + 0.703 + 0.83 = $5.34 Mil.
Cash Flow from Operations was 2.854 + -2.318 + 6.483 + -3.156 = $3.86 Mil.
Revenue was 20.619 + 24.011 + 15.704 + 20.441 = $80.78 Mil.
Gross Profit was 5.954 + 6.359 + 4.282 + 5.846 = $22.44 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(44.129 + 49.4 + 46.215 + 49.055 + 50.196) / 5 = $47.799 Mil.
Total Assets at the begining of this year (Sep13) was $44.13 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $42.32 Mil.
Total Current Liabilities was $13.55 Mil.
Net Income was 1.604 + 1.855 + 0.822 + 1.142 = $5.42 Mil.

Revenue was 20.07 + 23.611 + 16.613 + 20.051 = $80.35 Mil.
Gross Profit was 5.282 + 6.146 + 4.494 + 5.727 = $21.65 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(44.149 + 43.577 + 44.163 + 43.773 + 44.129) / 5 = $43.9582 Mil.
Total Assets at the begining of last year (Sep12) was $44.15 Mil.
Long-Term Debt was $0.00 Mil.
Total Current Assets was $35.69 Mil.
Total Current Liabilities was $10.63 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.

Crown Crafts Inc's current net income (TTM) was 5.34. ==> 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.

Crown Crafts Inc's current cash flow from operations (TTM) was 3.86. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=5.34/44.129
=0.12100886

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=5.423/44.149
=0.12283404

Crown Crafts Inc's return on assets of this year was 0.12100886. Crown Crafts Inc's return on assets of last year was 0.12283404. ==> 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.

Crown Crafts Inc's current net income (TTM) was 5.34. Crown Crafts Inc's current cash flow from operations (TTM) was 3.86. ==> 3.86 <= 5.34 ==> CFROA <= ROA ==> Score 0.

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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=0/47.799
=0

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=0/43.9582
=0

Crown Crafts Inc's gearing of this year was 0. Crown Crafts Inc's gearing of last year was 0. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=42.324/13.546
=3.12446479

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=35.694/10.629
=3.35817104

Crown Crafts Inc's current ratio of this year was 3.12446479. Crown Crafts Inc's current ratio of last year was 3.35817104. ==> 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.

Crown Crafts Inc's number of shares in issue this year was 10.1. Crown Crafts Inc's number of shares in issue last year was 9.9. ==> 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
=22.441/80.775
=0.27782111

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=21.649/80.345
=0.26945049

Crown Crafts Inc's gross margin of this year was 0.27782111. Crown Crafts Inc's gross margin of last year was 0.26945049. ==> This year's gross margin is higher. ==> Score 1.

Q9. 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 (Sep13)
=80.775/44.129
=1.83042897

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=80.345/44.149
=1.81986002

Crown Crafts Inc's asset turnover of this year was 1.83042897. Crown Crafts Inc's asset turnover of last year was 1.81986002. ==> 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+0+1+0+0+1+1
=5

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

Crown Crafts Inc 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.

Crown Crafts Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Q1 1111011111
Q2 1111111111
Q3 0100011111
Q4 1010110110
Q5 1110110111
Q6 1100101001
Q7 1110110000
Q8 0110010111
Q9 0001011001
F-score 6763585667

Crown Crafts Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1111011110
Q4 1111101010
Q5 1111111111
Q6 1100000100
Q7 0000000000
Q8 1111111111
Q9 0110001111
F-score 7876557775
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