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Golar LNG Ltd (NAS:GLNG)
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

Golar LNG Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

GLNG' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 5

2
9

During the past 13 years, the highest Piotroski F-Score of Golar LNG Ltd was 9. 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 4.311 + 12.991 + -24.23 + 7.769 = $0.84 Mil.
Cash Flow from Operations was 10.248 + -80.964 + 73.372 + 18.976 = $21.63 Mil.
Revenue was 19.758 + 20.966 + 21.084 + 28.834 = $90.64 Mil.
Gross Profit was 1.933 + 1.085 + 6.058 + 11.493 = $20.57 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(2427.239 + 2665.221 + 2697.311 + 3406.735 + 3617.682) / 5 = $2962.8376 Mil.
Total Assets at the begining of this year (Sep13) was $2,427.24 Mil.
Long-Term Debt was $999.28 Mil.
Total Current Assets was $447.14 Mil.
Total Current Liabilities was $140.30 Mil.
Net Income was 875.985 + 85.564 + 58.969 + -13.131 = $1,007.39 Mil.

Revenue was 99.158 + 35.811 + 27.926 + 17.03 = $179.93 Mil.
Gross Profit was 74.925 + 24.492 + 13.835 + 2.256 = $115.51 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2542.589 + 2414.399 + 2447.537 + 2464.083 + 2427.239) / 5 = $2459.1694 Mil.
Total Assets at the begining of last year (Sep12) was $2,542.59 Mil.
Long-Term Debt was $402.41 Mil.
Total Current Assets was $132.70 Mil.
Total Current Liabilities was $78.46 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.

Golar LNG Ltd's current net income (TTM) was 0.84. ==> 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.

Golar LNG Ltd's current cash flow from operations (TTM) was 21.63. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Sep13)
=0.841/2427.239
=0.00034648

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=1007.387/2542.589
=0.39620521

Golar LNG Ltd's return on assets of this year was 0.00034648. Golar LNG Ltd's return on assets of last year was 0.39620521. ==> 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.

Golar LNG Ltd's current net income (TTM) was 0.84. Golar LNG Ltd's current cash flow from operations (TTM) was 21.63. ==> 21.63 > 0.84 ==> 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: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=999.275/2962.8376
=0.33726958

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=402.413/2459.1694
=0.16363777

Golar LNG Ltd's gearing of this year was 0.33726958. Golar LNG Ltd's gearing of last year was 0.16363777. ==> Last year is lower than this year ==> Score 0.

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: Sep14)=Total Current Assets/Total Current Liabilities
=447.141/140.301
=3.18701221

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=132.704/78.461
=1.6913371

Golar LNG Ltd's current ratio of this year was 3.18701221. Golar LNG Ltd's current ratio of last year was 1.6913371. ==> 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.

Golar LNG Ltd's number of shares in issue this year was 0. Golar LNG Ltd's number of shares in issue last year was 0. ==> 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: TTM)=Gross Profit/Revenue
=20.569/90.642
=0.22692571

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=115.508/179.925
=0.6419786

Golar LNG Ltd's gross margin of this year was 0.22692571. Golar LNG Ltd's gross margin of last year was 0.6419786. ==> Last year's gross margin is higher ==> Score 0.

Q9. 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 (Sep13)
=90.642/2427.239
=0.03734366

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=179.925/2542.589
=0.07076448

Golar LNG Ltd's asset turnover of this year was 0.03734366. Golar LNG Ltd's asset turnover of last year was 0.07076448. ==> 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+0+1+1+0+0
=5

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

Golar LNG 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.

Golar LNG Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111011111
Q2 1111111111
Q3 0011010110
Q4 1110111100
Q5 1101101110
Q6 0101010010
Q7 0011000000
Q8 1010001100
Q9 0010101110
F-score 5576456762

Golar LNG Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 111111101
Q2 111111011
Q3 111110000
Q4 100000011
Q5 111110000
Q6 011110001
Q7 101110101
Q8 101000000
Q9 110000000
F-score 8967662225
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