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InterOil Corp (NYSE:IOC)
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

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

IOC' s 10-Year Piotroski F-Score Range
Min: 1   Max: 7
Current: 7

1
7

During the past 13 years, the highest Piotroski F-Score of InterOil Corp was 7. The lowest was 1. And the median was 4.


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 -24.813 + 318.636 + 52.266 + -16.931 = $329 Mil.
Cash Flow from Operations was 61.143 + -15.244 + 4.96 + -50.621 = $0 Mil.
Revenue was 1398.078 + 311.079 + 13.689 + 10.749 = $1,734 Mil.
Gross Profit was 138.565 + 40.365 + 13.689 + 10.749 = $203 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(1263.11 + 1305.799 + 1737.189 + 1400.601 + 1337.452) / 5 = $1,409 Mil.
Total Assets as of Sep13 was $1,263 Mil.
Long-Term Debt was $66 Mil.
Total Current Assets was $1,032 Mil.
Total Current Liabilities was $83 Mil.
Net Income was 18.545 + 4.003 + -13.23 + -6.318 = $3 Mil.

Revenue was 356.439 + 350.331 + 0.831 + 0.617 = $708 Mil.
Gross Profit was 16.41 + 35.572 + 0.831 + 0.617 = $53 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(1201.65 + 1299.819 + 1368.581 + 1308.07 + 1263.11) / 5 = $1,288 Mil.
Total Assets as of Sep12 was $1,202 Mil.
Long-Term Debt was $135 Mil.
Total Current Assets was $336 Mil.
Total Current Liabilities was $264 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

InterOil Corp's current net income (ttm) was 329. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

InterOil Corp's current cash flow from operations (ttm) was 0. ==> 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)/Beginning of This Year Total Assets (Sep13)
=329.158/1263.11
=0.2605933

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=3/1201.65
=0.00249657

InterOil Corp's return on assets of this year was 0.2605933. InterOil Corp's return on assets of last year was 0.00249657. ==> 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.

InterOil Corp's current net income (ttm) was 329. InterOil Corp's current cash flow from operations (ttm) was 0. ==> 0 =< 329 ==> CFROA =< ROA ==> Score 0.

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
=65.521/1408.8302
=0.04650738

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=135.215/1288.246
=0.10496054

InterOil Corp's gearing of this year was 0.04650738. InterOil Corp's gearing of last year was 0.10496054. ==> This year is lower or equal to last year. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=1031.583/83.431
=12.3645048

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=335.778/263.647
=1.27358931

InterOil Corp's current ratio of this year was 12.3645048. InterOil Corp's current ratio of last year was 1.27358931. ==> 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.

InterOil Corp's number of shares in issue this year was 49.6. InterOil Corp's number of shares in issue last year was 48.8. ==> There is larger 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: TTM)=Gross Profit/Revenue
=203.368/1733.595
=0.11730998

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=53.43/708.218
=0.07544287

InterOil Corp's gross margin of this year was 0.11730998. InterOil Corp's gross margin of last year was 0.07544287. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=1733.595/1263.11
=1.37248141

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=708.218/1201.65
=0.58937128

InterOil Corp's asset turnover of this year was 1.37248141. InterOil Corp's asset turnover of last year was 0.58937128. ==> 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+0+1+1+0+1+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

InterOil Corp 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

InterOil Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 000010110
Q2 000110101
Q3 111110100
Q4 110111101
Q5 101010101
Q6 110111000
Q7 000000001
Q8 111010011
Q9 101101010
F-score 644573535

InterOil Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 0010110111
Q2 1101001111
Q3 1100110111
Q4 1101001000
Q5 0100001111
Q6 0000100111
Q7 1000001000
Q8 0011111111
Q9 0011001011
F-score 4434436677
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