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Hasbro Inc (NAS:HAS)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hasbro Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

HAS' 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 Hasbro Inc 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 129.815 + 32.087 + 33.475 + 180.457 = $376 Mil.
Cash Flow from Operations was 353.815 + 242.041 + -132.771 + -82.444 = $381 Mil.
Revenue was 1281.773 + 679.453 + 829.262 + 1469.899 = $4,260 Mil.
Gross Profit was 650.245 + 371.327 + 438.393 + 772.781 = $2,233 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(4590.145 + 4402.267 + 4029.437 + 4138.595 + 4508.802) / 5 = $4333.8492 Mil.
Total Assets at the begining of this year (Sep13) was $4,590 Mil.
Long-Term Debt was $1,560 Mil.
Total Current Assets was $2,646 Mil.
Total Current Liabilities was $1,014 Mil.
Net Income was 130.299 + -6.671 + 36.48 + 126.574 = $287 Mil.

Revenue was 1283.529 + 663.694 + 766.342 + 1370.348 = $4,084 Mil.
Gross Profit was 677.57 + 346.73 + 465.772 + 657.819 = $2,148 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(4446.287 + 4325.387 + 4060.645 + 4178.299 + 4590.145) / 5 = $4320.1526 Mil.
Total Assets at the begining of last year (Sep12) was $4,446 Mil.
Long-Term Debt was $960 Mil.
Total Current Assets was $2,597 Mil.
Total Current Liabilities was $1,649 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.

Hasbro Inc's current net income (TTM) was 376. ==> 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.

Hasbro Inc's current cash flow from operations (TTM) was 381. ==> 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)
=375.834/4590.145
=0.08187846

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=286.682/4446.287
=0.06447672

Hasbro Inc's return on assets of this year was 0.08187846. Hasbro Inc's return on assets of last year was 0.06447672. ==> 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.

Hasbro Inc's current net income (TTM) was 376. Hasbro Inc's current cash flow from operations (TTM) was 381. ==> 381 > 376 ==> 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
=1559.895/4333.8492
=0.35993292

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=959.895/4320.1526
=0.22219007

Hasbro Inc's gearing of this year was 0.35993292. Hasbro Inc's gearing of last year was 0.22219007. ==> 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
=2646.189/1014.028
=2.60958179

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=2597.285/1648.879
=1.57518229

Hasbro Inc's current ratio of this year was 2.60958179. Hasbro Inc's current ratio of last year was 1.57518229. ==> 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.

Hasbro Inc's number of shares in issue this year was 127.3. Hasbro Inc's number of shares in issue last year was 130.3. ==> 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
=2232.746/4260.387
=0.52407117

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2147.891/4083.913
=0.52593946

Hasbro Inc's gross margin of this year was 0.52407117. Hasbro Inc's gross margin of last year was 0.52593946. ==> 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)
=4260.387/4590.145
=0.92815957

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=4083.913/4446.287
=0.91849964

Hasbro Inc's asset turnover of this year was 0.92815957. Hasbro Inc's asset turnover of last year was 0.91849964. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

Hasbro Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

Hasbro Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1111010000
Q4 1111100111
Q5 1000100111
Q6 0101111010
Q7 0111111111
Q8 0111010010
Q9 0111110100
F-score 5878774675

Hasbro Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000000001
Q4 1111111101
Q5 0111111100
Q6 0011000011
Q7 1111011011
Q8 0011111100
Q9 1100000001
F-score 5677566547
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