GTT Communications (GTT Communications) Piotroski F-Score : 0 (As of Jun. 18, 2024)

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What is GTT Communications Piotroski F-Score?

The zones of discrimination were as such:

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

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

The historical rank and industry rank for GTT Communications's Piotroski F-Score or its related term are showing as below:

GTT Communications Piotroski F-Score Historical Data

The historical data trend for GTT Communications's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GTT Communications Piotroski F-Score Chart

GTT Communications Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Piotroski F-Score

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6.00

4.00

2.00

5.00

GTT Communications Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
Piotroski F-Score	Get a 7-Day Free Trial															3.00	4.00	5.00	5.00	5.00

How is the Piotroski F-Score calculated?

This Year (Mar20) TTM:

Last Year (Mar19) TTM:

Net Income was -33.3 + -26.2 + -19.1 + -83.3 = $-162 Mil.
Cash Flow from Operations was 15.1 + 45.6 + 30.3 + 41.5 = $133 Mil.
Revenue was 433.8 + 420 + 423.8 + 424.7 = $1,702 Mil.
Gross Profit was 196.3 + 187.2 + 194 + 187 = $765 Mil.
Average Total Assets from the begining of this year (Mar19)
to the end of this year (Mar20) was
(4911.1 + 4894.7 + 4689.7 + 4757.7 + 4739) / 5 = $4798.44 Mil.
Total Assets at the begining of this year (Mar19) was $4,911 Mil.
Long-Term Debt & Capital Lease Obligation was $3,520 Mil.
Total Current Assets was $338 Mil.
Total Current Liabilities was $566 Mil.

Net Income was -136.3 + -23.4 + -53 + -27.3 = $-240 Mil.

Revenue was 326.8 + 448.6 + 454.8 + 450.2 = $1,680 Mil.
Gross Profit was 147.4 + 201.2 + 203.6 + 208.4 = $761 Mil.
Average Total Assets from the begining of last year (Mar18)
to the end of last year (Mar19) was
(1782.1 + 4794.6 + 4593.2 + 4537.6 + 4911.1) / 5 = $4123.72 Mil.
Total Assets at the begining of last year (Mar18) was $1,782 Mil.
Long-Term Debt & Capital Lease Obligation was $3,519 Mil.
Total Current Assets was $326 Mil.
Total Current Liabilities was $547 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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.

GTT Communications's current Net Income (TTM) was -162. ==> Negative ==> Score 0.

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.

GTT Communications's current Cash Flow from Operations (TTM) was 133. ==> 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.

ROA (This Year)	=	Net Income	/	Total Assets (Mar19)
	=	-161.9	/	4911.1
	=	-0.03296614

ROA (Last Year)	=	Net Income	/	Total Assets (Mar18)
	=	-240	/	1782.1
	=	-0.13467258

GTT Communications's return on assets of this year was -0.03296614. GTT Communications's return on assets of last year was -0.13467258. ==> This year is higher. ==> Score 1.

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.

GTT Communications's current Net Income (TTM) was -162. GTT Communications's current Cash Flow from Operations (TTM) was 133. ==> 133 > -162 ==> 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: Mar20)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar19 to Mar20
	=	3519.5	/	4798.44
	=	0.73346754

Gearing (Last Year: Mar19)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar18 to Mar19
	=	3519.4	/	4123.72
	=	0.85345271

GTT Communications's gearing of this year was 0.73346754. GTT Communications's gearing of last year was 0.85345271. ==> 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: Mar20)	=	Total Current Assets	/	Total Current Liabilities
	=	338.4	/	566.2
	=	0.59766867

Current Ratio (Last Year: Mar19)	=	Total Current Assets	/	Total Current Liabilities
	=	325.8	/	547.4
	=	0.5951772

GTT Communications's current ratio of this year was 0.59766867. GTT Communications's current ratio of last year was 0.5951772. ==> This year's current ratio is higher. ==> Score 1.

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.

GTT Communications's number of shares in issue this year was 57.26. GTT Communications's number of shares in issue last year was 55.839. ==> There is larger number of shares in issue this year. ==> Score 0.

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
	=	764.5	/	1702.3
	=	0.44909828

Gross Margin (Last Year: TTM)	=	Gross Profit	/	Revenue
	=	760.6	/	1680.4
	=	0.45263033

GTT Communications's gross margin of this year was 0.44909828. GTT Communications's gross margin of last year was 0.45263033. ==> 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	/	Total Assets at the Beginning of This Year (Mar19)
	=	1702.3	/	4911.1
	=	0.34662296

Asset Turnover (Last Year)	=	Revenue	/	Total Assets at the Beginning of Last Year (Mar18)
	=	1680.4	/	1782.1
	=	0.9429325

GTT Communications's asset turnover of this year was 0.34662296. GTT Communications's asset turnover of last year was 0.9429325. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score

Que. 1

Que. 2

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Que. 5

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Que. 9

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

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

GTT Communications (OTCPK:GTTNQ) Piotroski F-Score 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.

GTT Communications Piotroski F-Score Related Terms

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GTT Communications (GTT Communications) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

7900 Tysons One Place, Suite 1450, McLean, VA, USA, 22102

Website

https://www.gtt.net

GTT operates a global communications network, providing telecommunications services to large, multinational enterprises, carriers, and governments across five continents. Offerings include wide-area networks, Internet services (including Internet transit), voice, and other transport and infrastructure services. GTT's network consists primarily of leased assets over long-haul routes and connects in over 600 data centers worldwide. The firm uses other carriers for last-mile connections, and its model results in low capital spending needs. GTT relies heavily on acquisitions to expand its footprint. Customers primarily located in the United States account for about 40% of the firm's revenue, with most non-U.S. revenue coming from customers primarily in Europe.

Executives

Benjamin Forester Stein	director, 10 percent owner	435 HUDSON STREET, SUITE 804, NEW YORK NY 10014
Erving Julius W Ii	director	DR J ENTERPRISES LLC, 3355 LENOX ROAD NE SUITE 750, ATLANTA GA 30326
Howard E Janzen	director	COOL PLANET 6400 S. FIDDLERS GREEN CIRCLE, STE 1300 GREENWOOD VILLAGE CO 80111
S Joseph Bruno	director	3720 SOUTH OCEAN BLVD. UNIT 1206 HIGHLAND BEACH FL 33487
Smith Theodore B. Iii	director	C/O GLOBAL TELECOM & TECHNOLOGY, INC. 8484 WESTPARK DRIVE, SUITE 720 MCLEAN VA 22102
Elizabeth Satin	director	610 WEST END AVE APT 4B NEW YORK NY 10024
Nicola Adamo	director	10 MAACKA DRIVE, HOLMDEL NJ 07733
Zachary Sternberg	director	435 HUDSON STREET, SUITE 804, NEW YORK NY 10014
H Brian Thompson	director, 10 percent owner	1950 OLD GALLOWS ROAD SUITE 201, VIENNA VA 22182
Ernest Ortega	officer: Chief Revenue Officer	18934 CANOE LANDING COURT, LEESBURG VA 20176
Daniel M. Fraser	officer: Senior VP and Controller	GTT COMMUNICATIONS, INC. 7900 TYSONS ONE PLACE, SUITE 1450 MCLEAN VA 22102
Chris Mckee	officer: General Counsel and EVP	STARVOX COMMUNICATIONS, INC., 2728 ORCHARD PARKWAY, SAN JOSE CA 95134-2012
Don Macneil	officer: Chief Operating Officer	311 BROADWAY, POINT PLEASANT BEACH NJ 08742
Rhodric C Hackman	director	C/O MERCATOR PARTNERS ACQUISITION CORP. 11911 FREEDOM DRIVE, SUITE 1080 RESTON VA 20190
Richard Calder	director, officer: President and CEO	1010 WISCONSIN AVE SUITE 600 WASHINGTON DC 20007