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

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Quicksilver Resources Inc has an F-score of 4 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: 4

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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -36.095 + -58.833 + -31.779 + 10.577 = $-116.1 Mil.
Cash Flow from Operations was 19.221 + -19.984 + 29.403 + -2.997 = $25.6 Mil.
Revenue was 118.032 + 91.786 + 114.244 + 153.116 = $477.2 Mil.
Gross Profit was 40.602 + 18.87 + 60.106 + 79.166 = $198.7 Mil.
Total Assets at the begining of this year (Jun13) was $1,394.2 Mil.
Total Assets was $1,059.0 Mil.
Long-Term Debt was $1,795.6 Mil.
Total Current Assets was $180.1 Mil.
Total Current Liabilities was $139.9 Mil.
Net Income was 242.523 + -59.707 + -1100.922 + -651.762 = $-1,569.9 Mil.

Revenue was 175.497 + 118.703 + 179.072 + 177.702 = $651.0 Mil.
Gross Profit was 94.631 + 31.982 + 92.793 + 86.114 = $305.5 Mil.
Total Assets at the begining of last year (Jun12) was $3,244.5 Mil.
Total Assets was $1,394.2 Mil.
Long-Term Debt was $1,968.4 Mil.
Total Current Assets was $355.5 Mil.
Total Current Liabilities was $121.8 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 was -116.1. ==> 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 was 25.6. ==> 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 (Jun13)
=-116.13/1394.151
=-0.08329801

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=-1569.868/3244.524
=-0.48385156

Quicksilver Resources Inc's return on assets of this year was -0.08329801. Quicksilver Resources Inc's return on assets of last year was -0.48385156. ==> 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 was -116.1. Quicksilver Resources Inc's current cash flow from operations was 25.6. ==> 25.6 > -116.1 ==> 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)=Long-Term Debt/Total Assets
=1795.644/1059.047
=1.69552815

Gearing (Last Year)=Long-Term Debt/Total Assets
=1968.407/1394.151
=1.41190373

Quicksilver Resources Inc's gearing of this year was 1.69552815. Quicksilver Resources Inc's gearing of last year was 1.41190373. ==> 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)=Total Current Assets/Total Current Liabilities
=180.116/139.949
=1.2870117

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=355.507/121.84
=2.91781845

Quicksilver Resources Inc's current ratio of this year was 1.2870117. Quicksilver Resources Inc's current ratio of last year was 2.91781845. ==> 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.

Quicksilver Resources Inc's number of shares in issue this year was 173.9. Quicksilver Resources Inc's number of shares in issue last year was 171.4. ==> 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)=Gross Profit/Revenue
=198.744/477.178
=0.41649867

Gross Margin (Last Year)=Gross Profit/Revenue
=305.52/650.974
=0.4693275

Quicksilver Resources Inc's gross margin of this year was 0.41649867. Quicksilver Resources Inc's gross margin of last year was 0.4693275. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun13)
=477.178/1394.151
=0.34227139

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=650.974/3244.524
=0.20063775

Quicksilver Resources Inc's asset turnover of this year was 0.34227139. Quicksilver Resources Inc's asset turnover of last year was 0.20063775. ==> 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+0+0+0+1
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Quicksilver Resources Inc has an F-score of 4 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 0101001101
Q6 1010100111
Q7 0000100100
Q8 1101100000
Q9 1100001101
F-score 7745535735

Quicksilver Resources Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1000000110
Q2 1111110001
Q3 0000000111
Q4 1111111001
Q5 1000000110
Q6 1111011110
Q7 0100000000
Q8 1110000010
Q9 1000001111
F-score 7543233564
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