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Hasbro Inc (NAS:HAS)
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

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

HAS' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 5

3
9

During the past 13 years, the highest Piotroski F-Score of Hasbro Inc was 9. 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 32.087 + 129.815 + 126.574 + 36.48 = $325 Mil.
Cash Flow from Operations was 242.041 + 353.815 + -250.819 + 0.682 = $346 Mil.
Revenue was 679.453 + 1281.773 + 1370.348 + 766.342 = $4,098 Mil.
Gross Profit was 371.327 + 650.245 + 657.819 + 465.772 = $2,145 Mil.
Total Assets at the begining of this year (Mar13) was $4,061 Mil.
Total Assets was $4,029 Mil.
Long-Term Debt was $960 Mil.
Total Current Assets was $2,142 Mil.
Total Current Liabilities was $1,094 Mil.
Net Income was -6.671 + 130.299 + 164.852 + 43.427 = $332 Mil.

Revenue was 663.694 + 1283.529 + 1345.137 + 811.467 = $4,104 Mil.
Gross Profit was 346.73 + 677.57 + 669.397 + 428.59 = $2,122 Mil.
Total Assets at the begining of last year (Mar12) was $3,897 Mil.
Total Assets was $4,061 Mil.
Long-Term Debt was $1,394 Mil.
Total Current Assets was $2,250 Mil.
Total Current Liabilities was $742 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 was 325. ==> 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 was 346. ==> 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)
=324.956/4060.645
=0.08002571

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=331.907/3897.137
=0.08516688

Hasbro Inc's return on assets of this year was 0.08002571. Hasbro Inc's return on assets of last year was 0.08516688. ==> 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.

Hasbro Inc's current net income was 325. Hasbro Inc's current cash flow from operations was 346. ==> 346 > 325 ==> 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
=959.895/4029.437
=0.23822062

Gearing (Last Year)=Long-Term Debt/Total Assets
=1394.387/4060.645
=0.34339052

Hasbro Inc's gearing of this year was 0.23822062. Hasbro Inc's gearing of last year was 0.34339052. ==> 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
=2142.105/1093.721
=1.95854793

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=2250.396/741.673
=3.03421589

Hasbro Inc's current ratio of this year was 1.95854793. Hasbro Inc's current ratio of last year was 3.03421589. ==> 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.

Hasbro Inc's number of shares in issue this year was 132.7. Hasbro Inc's number of shares in issue last year was 129.3. ==> 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
=2145.163/4097.916
=0.52347657

Gross Margin (Last Year)=Gross Profit/Revenue
=2122.287/4103.827
=0.51714826

Hasbro Inc's gross margin of this year was 0.52347657. Hasbro Inc's gross margin of last year was 0.51714826. ==> 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)
=4097.916/4060.645
=1.00917859

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=4103.827/3897.137
=1.05303637

Hasbro Inc's asset turnover of this year was 1.00917859. Hasbro Inc's asset turnover of last year was 1.05303637. ==> 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+1+0+0+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Hasbro Inc 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.

Hasbro Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1111010000
Q4 1111100111
Q5 1000000111
Q6 0101111010
Q7 0111111111
Q8 0111001010
Q9 0111110100
F-score 5878665675

Hasbro Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 1000000000
Q4 1111111110
Q5 0111111110
Q6 0001100001
Q7 1111101100
Q8 0001111110
Q9 1110000000
F-score 6667756650
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