Switch to:
Macerich Co (NYSE:MAC)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

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

MAC' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 5

3
7

During the past 13 years, the highest Piotroski F-Score of Macerich Co was 7. The lowest was 3. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 17.819 + 144.878 + 38.123 + 218.997 = $420 Mil.
Cash Flow from Operations was 97.911 + 93.179 + 146.069 + 75.244 = $412 Mil.
Revenue was 264.512 + 256.568 + 266.556 + 256.977 = $1,045 Mil.
Gross Profit was 151.364 + 151.248 + 157.336 + 151.655 = $612 Mil.
Total Assets at the begining of this year (Mar13) was $9,763 Mil.
Total Assets was $9,008 Mil.
Long-Term Debt was $4,611 Mil.
Total Current Assets was $182 Mil.
Total Current Liabilities was $401 Mil.
Net Income was 18.092 + 174.247 + 43.893 + 133.354 = $370 Mil.

Revenue was 243.304 + 204.619 + 204.092 + 195.657 = $848 Mil.
Gross Profit was 141.551 + 119.371 + 120.14 + 109.891 = $491 Mil.
Total Assets at the begining of last year (Mar12) was $8,070 Mil.
Total Assets was $9,763 Mil.
Long-Term Debt was $5,434 Mil.
Total Current Assets was $270 Mil.
Total Current Liabilities was $415 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.

Macerich Co's current net income was 420. ==> 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.

Macerich Co's current cash flow from operations was 412. ==> 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 (Mar13)
=419.817/9762.684
=0.04300221

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=369.586/8069.835
=0.04579846

Macerich Co's return on assets of this year was 0.04300221. Macerich Co's return on assets of last year was 0.04579846. ==> 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.

Macerich Co's current net income was 420. Macerich Co's current cash flow from operations was 412. ==> 412 =< 420 ==> 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)=Long-Term Debt/Total Assets
=4611.132/9008.391
=0.51187077

Gearing (Last Year)=Long-Term Debt/Total Assets
=5434.465/9762.684
=0.55665686

Macerich Co's gearing of this year was 0.51187077. Macerich Co's gearing of last year was 0.55665686. ==> 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)=Total Current Assets/Total Current Liabilities
=181.572/401.334
=0.45242118

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=270.321/415.332
=0.65085522

Macerich Co's current ratio of this year was 0.45242118. Macerich Co's current ratio of last year was 0.65085522. ==> 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.

Macerich Co's number of shares in issue this year was 140.8. Macerich Co's number of shares in issue last year was 137.6. ==> 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
=611.603/1044.613
=0.58548285

Gross Margin (Last Year)=Gross Profit/Revenue
=490.953/847.672
=0.57917803

Macerich Co's gross margin of this year was 0.58548285. Macerich Co's gross margin of last year was 0.57917803. ==> This year's gross margin is higher. ==> Score 1.

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)
=1044.613/9762.684
=0.1070006

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=847.672/8069.835
=0.10504205

Macerich Co's asset turnover of this year was 0.1070006. Macerich Co's asset turnover of last year was 0.10504205. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Good or high score = 8 or 9

Bad or low score = 0 or 1

Macerich Co 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.

Macerich Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 0010100111
Q4 1101111111
Q5 0010011001
Q6 0001001000
Q7 0001110000
Q8 0001000111
Q9 0100100111
F-score 3446655667

Macerich Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1111111110
Q4 1100110010
Q5 0001000011
Q6 0100000000
Q7 0000000000
Q8 1111111111
Q9 1111101111
F-score 6756655575
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide