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Computer Sciences Corp (NYSE:CSC)
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

Computer Sciences Corp has an F-score of 6 indicating the company's financial situation is typical for a stable company.

CSC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 6

3
8

During the past 13 years, the highest Piotroski F-Score of Computer Sciences Corp was 8. The lowest was 3. 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 (Dec14) TTM:Last Year (Dec13) TTM:
Net Income was 174 + 146 + 151 + -314 = $157 Mil.
Cash Flow from Operations was 548 + 273 + 217 + 653 = $1,691 Mil.
Revenue was 3329 + 3237 + 3080 + 2947 = $12,593 Mil.
Gross Profit was 918 + 873 + 873 + 417 = $3,081 Mil.
Average Total Assets from the begining of this year (Dec13)
to the end of this year (Dec14) was
(11226 + 11389 + 11420 + 10573 + 10653) / 5 = $11052.2 Mil.
Total Assets at the begining of this year (Dec13) was $11,226 Mil.
Long-Term Debt was $2,170 Mil.
Total Current Assets was $5,186 Mil.
Total Current Liabilities was $3,190 Mil.
Net Income was 281 + 156 + 203 + 141 = $781 Mil.

Revenue was 3559 + 3260 + 3187 + 3228 = $13,234 Mil.
Gross Profit was 849 + 794 + 849 + 866 = $3,358 Mil.
Average Total Assets from the begining of last year (Dec12)
to the end of last year (Dec13) was
(11260 + 11251 + 10866 + 10773 + 11226) / 5 = $11075.2 Mil.
Total Assets at the begining of last year (Dec12) was $11,260 Mil.
Long-Term Debt was $2,184 Mil.
Total Current Assets was $5,408 Mil.
Total Current Liabilities was $3,382 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.

Computer Sciences Corp's current net income (TTM) was 157. ==> 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.

Computer Sciences Corp's current cash flow from operations (TTM) was 1,691. ==> 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.

Computer Sciences Corp's return on assets of this year was 0.01398539. Computer Sciences Corp's return on assets of last year was 0.06936057. ==> 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.

Computer Sciences Corp's current net income (TTM) was 157. Computer Sciences Corp's current cash flow from operations (TTM) was 1,691. ==> 1,691 > 157 ==> 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: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=2170/11052.2
=0.196341

Gearing (Last Year: Dec13)=Long-Term Debt/Average Total Assets from Dec12 to Dec13
=2184/11075.2
=0.19719734

Computer Sciences Corp's gearing of this year was 0.196341. Computer Sciences Corp's gearing of last year was 0.19719734. ==> 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: Dec14)=Total Current Assets/Total Current Liabilities
=5186/3190
=1.62570533

Current Ratio (Last Year: Dec13)=Total Current Assets/Total Current Liabilities
=5408/3382
=1.59905381

Computer Sciences Corp's current ratio of this year was 1.62570533. Computer Sciences Corp's current ratio of last year was 1.59905381. ==> This year's current ratio is higher. ==> Score 1.

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.

Computer Sciences Corp's number of shares in issue this year was 140.6. Computer Sciences Corp's number of shares in issue last year was 149.4. ==> 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
=3081/12593
=0.24465973

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3358/13234
=0.25374037

Computer Sciences Corp's gross margin of this year was 0.24465973. Computer Sciences Corp's gross margin of last year was 0.25374037. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec13)
=12593/11226
=1.12177089

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec12)
=13234/11260
=1.17531083

Computer Sciences Corp's asset turnover of this year was 1.12177089. Computer Sciences Corp's asset turnover of last year was 1.17531083. ==> 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+1+1+0+0
=6

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

Computer Sciences Corp 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.

Computer Sciences Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
Question 1 1111111011
Question 2 1111111111
Question 3 1001100010
Question 4 1111111111
Question 5 1010011101
Question 6 0100110010
Question 7 1111100101
Question 8 1110100011
Question 9 0001000110
F-score 7666754576

Computer Sciences Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
Question 1 0111111111
Question 2 1111111111
Question 3 1111110000
Question 4 1111011111
Question 5 0000011111
Question 6 0111100001
Question 7 0011111111
Question 8 0111111110
Question 9 1111100010
F-score 4788776676
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