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China Yuchai International, Ltd. (NYSE:CYD)
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

China Yuchai International, Ltd. has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CYD' 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 China Yuchai International, Ltd. was 8. The lowest was 2. 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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 40.7046769129 + 17.4533835818 + 27.1079230518 + 28.0478499838 = $113 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Revenue was 671.700545364 + 613.198427003 + 693.163514835 + 621.351438733 = $2,599 Mil.
Gross Profit was 140.708808461 + 128.053580206 + 139.413433322 + 125.652117685 = $534 Mil.
Total Assets at the begining of this year (Dec12) was $2,881 Mil.
Total Assets was $2,270 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $2,176 Mil.
Total Current Liabilities was $1,214 Mil.
Net Income was 35.5520732883 + 17.7429346958 + 10.5337413685 + 26.6311865482 = $90 Mil.

Revenue was 524.648183864 + 491.269200064 + 537.716886378 + 584.069955584 = $2,138 Mil.
Gross Profit was 129.364834458 + 99.232476449 + 105.786723164 + 123.637373096 = $458 Mil.
Total Assets at the begining of last year (Dec11) was $3,032 Mil.
Total Assets was $2,881 Mil.
Long-Term Debt was $18 Mil.
Total Current Assets was $2,006 Mil.
Total Current Liabilities was $1,542 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.

China Yuchai International, Ltd.'s current net income was 113. ==> 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.

China Yuchai International, Ltd.'s current cash flow from operations was 0. ==> 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 (Dec12)
=113.31383353/2880.69318547
=0.03933561

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=90.4599359009/3031.66360614
=0.02983838

China Yuchai International, Ltd.'s return on assets of this year was 0.03933561. China Yuchai International, Ltd.'s return on assets of last year was 0.02983838. ==> 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.

China Yuchai International, Ltd.'s current net income was 113. China Yuchai International, Ltd.'s current cash flow from operations was 0. ==> 0 =< 113 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/2270.09618245
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=17.9077467052/2880.69318547
=0.00621647

China Yuchai International, Ltd.'s gearing of this year was 0. China Yuchai International, Ltd.'s gearing of last year was 0.00621647. ==> This year is lower. ==> 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
=2176.2913568/1213.81292348
=1.79293803

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2005.85856638/1542.23240116
=1.30062017

China Yuchai International, Ltd.'s current ratio of this year was 1.79293803. China Yuchai International, Ltd.'s current ratio of last year was 1.30062017. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

China Yuchai International, Ltd.'s number of shares in issue this year was 110.6. China Yuchai International, Ltd.'s number of shares in issue last year was 37.3. ==> There is more 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
=533.827939675/2599.41392594
=0.20536473

Gross Margin (Last Year)=Gross Profit/Revenue
=458.021407168/2137.70422589
=0.21425855

China Yuchai International, Ltd.'s gross margin of this year was 0.20536473. China Yuchai International, Ltd.'s gross margin of last year was 0.21425855. ==> Last year's gross margin is higher ==> Score 0.

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 (Dec12)
=2599.41392594/2880.69318547
=0.90235709

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2137.70422589/3031.66360614
=0.7051258

China Yuchai International, Ltd.'s asset turnover of this year was 0.90235709. China Yuchai International, Ltd.'s asset turnover of last year was 0.7051258. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

China Yuchai International, Ltd. 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.

China Yuchai International, Ltd. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111010
Q3 1011011001
Q4 1110111010
Q5 0101101111
Q6 1001011011
Q7 0000000000
Q8 0001001000
Q9 1010010001
F-score 6456467255

China Yuchai International, Ltd. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 11111111
Q2 10001110
Q3 00000001
Q4 10001110
Q5 01111001
Q6 00011111
Q7 00000000
Q8 10000000
Q9 00000011
F-score 4202356450
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