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Cardiovascular Systems Inc (NAS:CSII)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

CSII' s 10-Year Piotroski F-Score Range
Min: 1   Max: 5
Current: 5

1
5

During the past 12 years, the highest Piotroski F-Score of Cardiovascular Systems Inc was 5. The lowest was 1. 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 -9.712 + -8.658 + -7.292 + -6.841 = $-32.5 Mil.
Cash Flow from Operations was -5.808 + -6.87 + -5.618 + -1.401 = $-19.7 Mil.
Revenue was 34.945 + 32.337 + 29.766 + 28.821 = $125.9 Mil.
Gross Profit was 27.196 + 25.024 + 22.902 + 21.892 = $97.0 Mil.
Total Assets at the begining of this year (Mar13) was $99.0 Mil.
Total Assets was $185.5 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $178.4 Mil.
Total Current Liabilities was $29.1 Mil.
Net Income was -6.219 + -5.767 + -5.21 + -4.605 = $-21.8 Mil.

Revenue was 26.474 + 25.309 + 23.293 + 22.907 = $98.0 Mil.
Gross Profit was 20.233 + 19.351 + 18.039 + 17.729 = $75.4 Mil.
Total Assets at the begining of last year (Mar12) was $49.8 Mil.
Total Assets was $99.0 Mil.
Long-Term Debt was $8.9 Mil.
Total Current Assets was $92.7 Mil.
Total Current Liabilities was $20.0 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.

Cardiovascular Systems Inc's current net income was -32.5. ==> Negative ==> Score 0.

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.

Cardiovascular Systems Inc's current cash flow from operations was -19.7. ==> Negative ==> Score 0.

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)
=-32.503/99.033
=-0.32820373

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=-21.801/49.821
=-0.43758656

Cardiovascular Systems Inc's return on assets of this year was -0.32820373. Cardiovascular Systems Inc's return on assets of last year was -0.43758656. ==> This year is higher. ==> Score 1.

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.

Cardiovascular Systems Inc's current net income was -32.5. Cardiovascular Systems Inc's current cash flow from operations was -19.7. ==> -19.7 > -32.5 ==> 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
=0/185.489
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=8.851/99.033
=0.08937425

Cardiovascular Systems Inc's gearing of this year was 0. Cardiovascular Systems Inc's gearing of last year was 0.08937425. ==> 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
=178.379/29.065
=6.13724411

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=92.693/19.955
=4.64510148

Cardiovascular Systems Inc's current ratio of this year was 6.13724411. Cardiovascular Systems Inc's current ratio of last year was 4.64510148. ==> This year's current ratio is higher. ==> Score 1.

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.

Cardiovascular Systems Inc's number of shares in issue this year was 30.4. Cardiovascular Systems Inc's number of shares in issue last year was 21.5. ==> 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)=Gross Profit/Revenue
=97.014/125.869
=0.77075372

Gross Margin (Last Year)=Gross Profit/Revenue
=75.352/97.983
=0.76903136

Cardiovascular Systems Inc's gross margin of this year was 0.77075372. Cardiovascular Systems Inc's gross margin of last year was 0.76903136. ==> 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 (Mar13)
=125.869/99.033
=1.27098038

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=97.983/49.821
=1.96670079

Cardiovascular Systems Inc's asset turnover of this year was 1.27098038. Cardiovascular Systems Inc's asset turnover of last year was 1.96670079. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+0+1+1+1+1+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Cardiovascular Systems 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.

Cardiovascular Systems Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Jun09Jun10Jun11Jun12Jun13
Q1 01000000
Q2 10000000
Q3 11010100
Q4 10001111
Q5 11100001
Q6 01101111
Q7 00100000
Q8 00001100
Q9 11010100
F-score 55323523

Cardiovascular Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000000
Q2 0000000000
Q3 0000000011
Q4 1111111111
Q5 0001111111
Q6 1100111111
Q7 0000000000
Q8 0000000011
Q9 1000101100
F-score 3212434450
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