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JetBlue Airways Corp (NAS:JBLU)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

JetBlue Airways Corp has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

JBLU' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of JetBlue Airways Corp 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 47 + 4 + 230 + 79 = $360 Mil.
Cash Flow from Operations was 193 + 322 + 219 + 183 = $917 Mil.
Revenue was 1365 + 1349 + 1493 + 1529 = $5,736 Mil.
Gross Profit was 696 + 683 + 780 + 786 = $2,945 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(7444 + 7350 + 7645 + 7657 + 7741) / 5 = $7567.4 Mil.
Total Assets at the begining of this year (Sep13) was $7,444 Mil.
Long-Term Debt was $2,088 Mil.
Total Current Assets was $1,215 Mil.
Total Current Liabilities was $1,915 Mil.
Net Income was 1 + 14 + 36 + 71 = $122 Mil.

Revenue was 1194 + 1299 + 1335 + 1442 = $5,270 Mil.
Gross Profit was 574 + 616 + 646 + 719 = $2,555 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(7141 + 7070 + 7234 + 7368 + 7444) / 5 = $7251.4 Mil.
Total Assets at the begining of last year (Sep12) was $7,141 Mil.
Long-Term Debt was $2,206 Mil.
Total Current Assets was $1,382 Mil.
Total Current Liabilities was $2,033 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.

JetBlue Airways Corp's current net income (TTM) was 360. ==> 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.

JetBlue Airways Corp's current cash flow from operations (TTM) was 917. ==> 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.

JetBlue Airways Corp's return on assets of this year was 0.0483611. JetBlue Airways Corp's return on assets of last year was 0.01708444. ==> 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.

JetBlue Airways Corp's current net income (TTM) was 360. JetBlue Airways Corp's current cash flow from operations (TTM) was 917. ==> 917 > 360 ==> 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
=2088/7567.4
=0.2759204

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=2206/7251.4
=0.30421712

JetBlue Airways Corp's gearing of this year was 0.2759204. JetBlue Airways Corp's gearing of last year was 0.30421712. ==> 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
=1215/1915
=0.63446475

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=1382/2033
=0.67978357

JetBlue Airways Corp's current ratio of this year was 0.63446475. JetBlue Airways Corp's current ratio of last year was 0.67978357. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

JetBlue Airways Corp's number of shares in issue this year was 341.1. JetBlue Airways Corp's number of shares in issue last year was 343.7. ==> 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
=2945/5736
=0.51342399

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2555/5270
=0.48481973

JetBlue Airways Corp's gross margin of this year was 0.51342399. JetBlue Airways Corp's gross margin of last year was 0.48481973. ==> 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 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)
=5736/7444
=0.77055347

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=5270/7141
=0.73799188

JetBlue Airways Corp's asset turnover of this year was 0.77055347. JetBlue Airways Corp's asset turnover of last year was 0.73799188. ==> 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+1+0+1+1+1
=8

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

JetBlue Airways Corp has an F-score of 8. 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.

JetBlue Airways Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1001011111
Q2 1111011111
Q3 0011011011
Q4 1111111111
Q5 0011111111
Q6 0010110000
Q7 0100000111
Q8 0001010001
Q9 0100101111
F-score 3456476678

JetBlue Airways Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 1110001111
Q4 1111111111
Q5 1111111111
Q6 0000000110
Q7 1101111101
Q8 0000011111
Q9 1111111111
F-score 7766678988
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