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Walt Disney Co (NYSE:DIS)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Walt Disney Co has an F-score of 7 indicating the company's financial situation is typical for a stable company.

DIS' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Walt Disney Co 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 1917 + 1840 + 1394 + 1847 = $6,998 Mil.
Cash Flow from Operations was 2527 + 1212 + 2735 + 3413 = $9,887 Mil.
Revenue was 11649 + 12309 + 11568 + 11578 = $47,104 Mil.
Gross Profit was 2981 + 2665 + 2159 + 3004 = $10,809 Mil.
Total Assets at the begining of this year (Mar13) was $81,358 Mil.
Total Assets was $82,580 Mil.
Long-Term Debt was $10,909 Mil.
Total Current Assets was $15,046 Mil.
Total Current Liabilities was $15,162 Mil.
Net Income was 1513 + 1382 + 1244 + 1831 = $5,970 Mil.

Revenue was 10554 + 11341 + 10782 + 11088 = $43,765 Mil.
Gross Profit was 2195 + 2092 + 2024 + 2960 = $9,271 Mil.
Total Assets at the begining of last year (Mar12) was $75,233 Mil.
Total Assets was $81,358 Mil.
Long-Term Debt was $13,381 Mil.
Total Current Assets was $15,003 Mil.
Total Current Liabilities was $13,453 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.

Walt Disney Co's current net income was 6,998. ==> 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.

Walt Disney Co's current cash flow from operations was 9,887. ==> 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 (Mar13)
=6998/81358
=0.0860149

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=5970/75233
=0.07935348

Walt Disney Co's return on assets of this year was 0.0860149. Walt Disney Co's return on assets of last year was 0.07935348. ==> 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.

Walt Disney Co's current net income was 6,998. Walt Disney Co's current cash flow from operations was 9,887. ==> 9,887 > 6,998 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=10909/82580
=0.1321022

Gearing (Last Year)=Long-Term Debt/Total Assets
=13381/81358
=0.16447061

Walt Disney Co's gearing of this year was 0.1321022. Walt Disney Co's gearing of last year was 0.16447061. ==> 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
=15046/15162
=0.99234929

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=15003/13453
=1.11521594

Walt Disney Co's current ratio of this year was 0.99234929. Walt Disney Co's current ratio of last year was 1.11521594. ==> 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 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Walt Disney Co's number of shares in issue this year was 1770. Walt Disney Co's number of shares in issue last year was 1825. ==> There is the same number of shares in issue this year, or fewer. ==> 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
=10809/47104
=0.22947096

Gross Margin (Last Year)=Gross Profit/Revenue
=9271/43765
=0.21183594

Walt Disney Co's gross margin of this year was 0.22947096. Walt Disney Co's gross margin of last year was 0.21183594. ==> 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)
=47104/81358
=0.57897195

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=43765/75233
=0.5817261

Walt Disney Co's asset turnover of this year was 0.57897195. Walt Disney Co's asset turnover of last year was 0.5817261. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Walt Disney Co has an F-score of 7 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.

Walt Disney Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111111111
Q2 1111111111
Q3 1111001111
Q4 1111111111
Q5 1010101010
Q6 0101110101
Q7 0110110111
Q8 1011101111
Q9 1010101001
F-score 7686857778

Walt Disney Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1111111111
Q4 1111111111
Q5 0001011011
Q6 1110000110
Q7 1111100111
Q8 1111111111
Q9 1110100100
F-score 8887766887
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