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Quicksilver Resources Inc (NYSE:KWK)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

KWK' s 10-Year Piotroski F-Score Range
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Quicksilver Resources Inc was 8. The lowest was 2. And the median was 5.


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 -31.779 + -58.833 + -36.095 + 23.757 = $-103.0 Mil.
Cash Flow from Operations was 29.403 + -19.984 + 19.221 + -4.22 = $24.4 Mil.
Revenue was 114.244 + 91.786 + 118.032 + 163.498 = $487.6 Mil.
Gross Profit was 44.644 + 18.87 + 40.602 + 94.916 = $199.0 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(1331.613 + 1369.726 + 1259.827 + 1059.047 + 1268.257) / 5 = $1257.694 Mil.
Total Assets at the begining of this year (Sep13) was $1,331.6 Mil.
Long-Term Debt was $2,037.8 Mil.
Total Current Assets was $396.3 Mil.
Total Current Liabilities was $108.5 Mil.
Net Income was -548.499 + -59.707 + 242.523 + 10.577 = $-355.1 Mil.

Revenue was 223.966 + 118.703 + 175.497 + 153.116 = $671.3 Mil.
Gross Profit was 163.081 + 31.982 + 94.631 + 83.844 = $373.5 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(2490.244 + 1381.788 + 1309.209 + 1394.151 + 1331.613) / 5 = $1581.401 Mil.
Total Assets at the begining of last year (Sep12) was $2,490.2 Mil.
Long-Term Debt was $1,926.2 Mil.
Total Current Assets was $349.9 Mil.
Total Current Liabilities was $115.7 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.

Quicksilver Resources Inc's current net income (TTM) was -103.0. ==> Negative ==> Score 0.

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.

Quicksilver Resources Inc's current cash flow from operations (TTM) was 24.4. ==> 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)
=-102.95/1331.613
=-0.07731225

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=-355.106/2490.244
=-0.14259888

Quicksilver Resources Inc's return on assets of this year was -0.07731225. Quicksilver Resources Inc's return on assets of last year was -0.14259888. ==> 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.

Quicksilver Resources Inc's current net income (TTM) was -103.0. Quicksilver Resources Inc's current cash flow from operations (TTM) was 24.4. ==> 24.4 > -103.0 ==> 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
=2037.844/1257.694
=1.62030192

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=1926.167/1581.401
=1.21801302

Quicksilver Resources Inc's gearing of this year was 1.62030192. Quicksilver Resources Inc's gearing of last year was 1.21801302. ==> 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
=396.3/108.524
=3.65172681

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=349.948/115.658
=3.02571374

Quicksilver Resources Inc's current ratio of this year was 3.65172681. Quicksilver Resources Inc's current ratio of last year was 3.02571374. ==> 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.

Quicksilver Resources Inc's number of shares in issue this year was 174.2. Quicksilver Resources Inc's number of shares in issue last year was 172. ==> 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
=199.032/487.56
=0.40822053

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=373.538/671.282
=0.55645466

Quicksilver Resources Inc's gross margin of this year was 0.40822053. Quicksilver Resources Inc's gross margin of last year was 0.55645466. ==> 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)
=487.56/1331.613
=0.36614242

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=671.282/2490.244
=0.26956475

Quicksilver Resources Inc's asset turnover of this year was 0.36614242. Quicksilver Resources Inc's asset turnover of last year was 0.26956475. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=0+1+1+1+0+1+0+0+1
=5

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

Quicksilver Resources 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.

Quicksilver Resources Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111001101
Q2 1111111110
Q3 1101011001
Q4 1110110110
Q5 0101011000
Q6 1010100111
Q7 0000100100
Q8 1101100000
Q9 1100001101
F-score 7745545634

Quicksilver Resources Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 0000001100
Q2 1111110011
Q3 0000011111
Q4 1111110011
Q5 0000000000
Q6 1110111101
Q7 1000000000
Q8 0000010000
Q9 0000011111
F-score 4332364445
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