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Computer Sciences Corp (NYSE:CSC)
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

Computer Sciences Corp has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CSC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 5

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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was -314 + 9 + 160 + 167 = $22 Mil.
Cash Flow from Operations was 653 + 290 + 324 + 117 = $1,384 Mil.
Revenue was 2947 + 2909 + 2761 + 2712 = $11,329 Mil.
Gross Profit was 417 + 476 + 735 + 742 = $2,370 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(10573 + 10653 + 10201 + 10116 + 10013) / 5 = $10311.2 Mil.
Total Assets at the begining of this year (Sep14) was $10,573 Mil.
Long-Term Debt was $1,716 Mil.
Total Current Assets was $4,445 Mil.
Total Current Liabilities was $3,377 Mil.
Net Income was 141 + 174 + 146 + 151 = $612 Mil.

Revenue was 3228 + 3329 + 3237 + 3080 = $12,874 Mil.
Gross Profit was 866 + 918 + 873 + 873 = $3,530 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(10773 + 11226 + 11389 + 11420 + 10573) / 5 = $11076.2 Mil.
Total Assets at the begining of last year (Sep13) was $10,773 Mil.
Long-Term Debt was $2,214 Mil.
Total Current Assets was $5,076 Mil.
Total Current Liabilities was $3,020 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 22. ==> 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 1,384. ==> 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 0.00208077. Computer Sciences Corp's return on assets of last year was 0.05680869. ==> 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 22. Computer Sciences Corp's current cash flow from operations (TTM) was 1,384. ==> 1,384 > 22 ==> 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=1716/10311.2
=0.16642098

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2214/11076.2
=0.19988805

Computer Sciences Corp's gearing of this year was 0.16642098. Computer Sciences Corp's gearing of last year was 0.19988805. ==> 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: Sep15)=Total Current Assets/Total Current Liabilities
=4445/3377
=1.31625703

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=5076/3020
=1.6807947

Computer Sciences Corp's current ratio of this year was 1.31625703. Computer Sciences Corp's current ratio of last year was 1.6807947. ==> 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.

Computer Sciences Corp's number of shares in issue this year was 140.7. Computer Sciences Corp's number of shares in issue last year was 147.2. ==> 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
=2370/11329
=0.20919763

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3530/12874
=0.27419605

Computer Sciences Corp's gross margin of this year was 0.20919763. Computer Sciences Corp's gross margin of last year was 0.27419605. ==> 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 (Sep14)
=11329/10573
=1.07150288

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=12874/10773
=1.1950246

Computer Sciences Corp's asset turnover of this year was 1.07150288. Computer Sciences Corp's asset turnover of last year was 1.1950246. ==> 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+0+0
=5

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

Computer Sciences Corp 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.

Computer Sciences Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Question 1 1111110110
Question 2 1111111111
Question 3 0011000100
Question 4 1111111111
Question 5 0100111011
Question 6 1001100100
Question 7 1111001011
Question 8 1101000110
Question 9 0010001100
F-score 6667545764

Computer Sciences Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Question 1 1111111011
Question 2 1111111111
Question 3 1110000000
Question 4 1011111111
Question 5 0011111111
Question 6 1100001000
Question 7 1111111111
Question 8 1111110000
Question 9 1100010000
F-score 8776676455
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