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

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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 146 + 174 + 141 + 203 = $664 Mil.
Cash Flow from Operations was 273 + 548 + 529 + 270 = $1,620 Mil.
Revenue was 3237 + 3329 + 3228 + 3187 = $12,981 Mil.
Gross Profit was 873 + 918 + 866 + 849 = $3,506 Mil.
Total Assets at the begining of this year (Jun13) was $10,866 Mil.
Total Assets was $11,420 Mil.
Long-Term Debt was $2,194 Mil.
Total Current Assets was $5,649 Mil.
Total Current Liabilities was $3,411 Mil.
Net Income was 156 + 281 + 510 + 130 = $1,077 Mil.

Revenue was 3260 + 3559 + 3781 + 3854 = $14,454 Mil.
Gross Profit was 794 + 849 + 786 + 860 = $3,289 Mil.
Total Assets at the begining of last year (Jun12) was $10,926 Mil.
Total Assets was $10,866 Mil.
Long-Term Debt was $2,461 Mil.
Total Current Assets was $5,360 Mil.
Total Current Liabilities was $3,079 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.

Computer Sciences Corp's current net income was 664. ==> 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.

Computer Sciences Corp's current cash flow from operations was 1,620. ==> 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 (Jun13)
=664/10866
=0.06110804

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=1077/10926
=0.09857221

Computer Sciences Corp's return on assets of this year was 0.06110804. Computer Sciences Corp's return on assets of last year was 0.09857221. ==> 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.

Computer Sciences Corp's current net income was 664. Computer Sciences Corp's current cash flow from operations was 1,620. ==> 1,620 > 664 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=2194/11420
=0.19211909

Gearing (Last Year)=Long-Term Debt/Total Assets
=2461/10866
=0.22648629

Computer Sciences Corp's gearing of this year was 0.19211909. Computer Sciences Corp's gearing of last year was 0.22648629. ==> 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)=Total Current Assets/Total Current Liabilities
=5649/3411
=1.65611258

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=5360/3079
=1.74082494

Computer Sciences Corp's current ratio of this year was 1.65611258. Computer Sciences Corp's current ratio of last year was 1.74082494. ==> 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.

Computer Sciences Corp's number of shares in issue this year was 148.3. Computer Sciences Corp's number of shares in issue last year was 152.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=3506/12981
=0.27008705

Gross Margin (Last Year)=Gross Profit/Revenue
=3289/14454
=0.22754947

Computer Sciences Corp's gross margin of this year was 0.27008705. Computer Sciences Corp's gross margin of last year was 0.22754947. ==> This year's gross margin is higher. ==> Score 1.

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 (Jun13)
=12981/10866
=1.19464384

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=14454/10926
=1.32289951

Computer Sciences Corp's asset turnover of this year was 1.19464384. Computer Sciences Corp's asset turnover of last year was 1.32289951. ==> 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+1+1+0
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

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
Q1 1111111011
Q2 1111111111
Q3 1001100010
Q4 1111111111
Q5 1010011101
Q6 0100110010
Q7 1111100101
Q8 1110100011
Q9 0001000110
F-score 7666754576

Computer Sciences Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0001111111
Q2 1111111111
Q3 0011111100
Q4 1111110111
Q5 1101000111
Q6 0001111000
Q7 1100111111
Q8 0001111111
Q9 1011111000
F-score 5448887766
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