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Lloyds Banking Group PLC (NYSE:LYG)
Piotroski F-Score
1 (As of Today)

Warning Sign:

Piotroski F-Score of 1 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Lloyds Banking Group PLC has an F-score of 1. It is a bad or low score, which usually implies poor business operation.

LYG' s 10-Year Piotroski F-Score Range
Min: 1   Max: 6
Current: 1

1
6

During the past 13 years, the highest Piotroski F-Score of Lloyds Banking Group PLC was 6. The lowest was 1. And the median was 3.


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 1922.9480737 + -1802.30642504 + -2099.8389694 + 53.1107738998 = $-1,926 Mil.
Cash Flow from Operations was 0 + 2948.9291598 + 0 + -26283.7632777 = $-23,335 Mil.
Revenue was 13160.8040201 + 12594.7281713 + 14368.7600644 + 6572.07890744 = $46,696 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of this year (Mar13) was $1,374,467 Mil.
Total Assets was $1,411,072 Mil.
Long-Term Debt was $190,179 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 Mil.
Net Income was 2335.37519142 + -613.418530351 + -627.009646302 + -1079.56318253 = $15 Mil.

Revenue was 28286.3705972 + 18466.4536741 + 18954.9839228 + 7365.05460218 = $73,073 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Assets at the begining of last year (Mar12) was $1,546,832 Mil.
Total Assets was $1,374,467 Mil.
Long-Term Debt was $222,698 Mil.
Total Current Assets was $0 Mil.
Total Current Liabilities was $0 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.

Lloyds Banking Group PLC's current net income was -1,926. ==> 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.

Lloyds Banking Group PLC's current cash flow from operations was -23,335. ==> Negative ==> Score 0.

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)
=-1926.08654684/1374467.07504
=-0.00140133

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=15.3838322432/1546832
=9.95E-6

Lloyds Banking Group PLC's return on assets of this year was -0.00140133. Lloyds Banking Group PLC's return on assets of last year was 9.95E-6. ==> 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.

Lloyds Banking Group PLC's current net income was -1,926. Lloyds Banking Group PLC's current cash flow from operations was -23,335. ==> -23,335 =< -1,926 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=190179.229481/1411072.0268
=0.13477642

Gearing (Last Year)=Long-Term Debt/Total Assets
=222698.315467/1374467.07504
=0.16202521

Lloyds Banking Group PLC's gearing of this year was 0.13477642. Lloyds Banking Group PLC's gearing of last year was 0.16202521. ==> 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
=0/0
=

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=0/0
=

Lloyds Banking Group PLC's current ratio of this year was . Lloyds Banking Group PLC's current ratio of last year was . ==> 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.

Lloyds Banking Group PLC's number of shares in issue this year was 0. Lloyds Banking Group PLC's number of shares in issue last year was 0. ==> 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
=0/46696.3711633
=0

Gross Margin (Last Year)=Gross Profit/Revenue
=0/73072.8627964
=0

Lloyds Banking Group PLC's gross margin of this year was 0. Lloyds Banking Group PLC's gross margin of last year was 0. ==> 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 (Mar13)
=46696.3711633/1374467.07504
=0.03397416

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=73072.8627964/1546832
=0.04724034

Lloyds Banking Group PLC's asset turnover of this year was 0.03397416. Lloyds Banking Group PLC's asset turnover of last year was 0.04724034. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Lloyds Banking Group PLC has an F-score of 1. It is a bad or low score, which usually implies poor business operation.


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.

Lloyds Banking Group PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111110000
Q2 1111100110
Q3 0010010101
Q4 1011101110
Q5 1010010011
Q6 0000000000
Q7 0001000000
Q8 0000000000
Q9 1000010011
F-score 5254341343

Lloyds Banking Group PLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 00011000
Q2 11110000
Q3 11011110
Q4 11110000
Q5 01111111
Q6 00000000
Q7 00000000
Q8 00000000
Q9 00111100
F-score 3342464331
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