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Marriott International Inc (NAS:MAR)
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

Marriott International Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

MAR' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 8

2
9

During the past 13 years, the highest Piotroski F-Score of Marriott International Inc was 9. The lowest was 2. 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 192 + 192 + 197 + 207 = $788 Mil.
Cash Flow from Operations was 487 + 281 + 274 + 262 = $1,304 Mil.
Revenue was 3484 + 3460 + 3559 + 3513 = $14,016 Mil.
Gross Profit was 522 + 503 + 503 + 521 = $2,049 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(6665 + 6830 + 6847 + 6865 + 6803) / 5 = $6802 Mil.
Total Assets at the begining of this year (Mar14) was $6,665 Mil.
Long-Term Debt was $3,703 Mil.
Total Current Assets was $1,828 Mil.
Total Current Liabilities was $3,030 Mil.
Net Income was 179 + 160 + 151 + 172 = $662 Mil.

Revenue was 3263 + 3160 + 3219 + 3293 = $12,935 Mil.
Gross Profit was 472 + 426 + 451 + 438 = $1,787 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(6523 + 6377 + 6480 + 6794 + 6665) / 5 = $6567.8 Mil.
Total Assets at the begining of last year (Mar13) was $6,523 Mil.
Long-Term Debt was $3,295 Mil.
Total Current Assets was $1,565 Mil.
Total Current Liabilities was $2,596 Mil.

Profitability

Question 1. 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.

Marriott International Inc's current net income (TTM) was 788. ==> Positive ==> Score 1.

Question 2. 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.

Marriott International Inc's current cash flow from operations (TTM) was 1,304. ==> Positive ==> Score 1.

Question 3. 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.

Marriott International Inc's return on assets of this year was 0.11822956. Marriott International Inc's return on assets of last year was 0.10148705. ==> This year is higher. ==> Score 1.

Question 4. 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.

Marriott International Inc's current net income (TTM) was 788. Marriott International Inc's current cash flow from operations (TTM) was 1,304. ==> 1,304 > 788 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=3703/6802
=0.54439871

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=3295/6567.8
=0.50169006

Marriott International Inc's gearing of this year was 0.54439871. Marriott International Inc's gearing of last year was 0.50169006. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Mar15)=Total Current Assets/Total Current Liabilities
=1828/3030
=0.60330033

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=1565/2596
=0.60285054

Marriott International Inc's current ratio of this year was 0.60330033. Marriott International Inc's current ratio of last year was 0.60285054. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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.

Marriott International Inc's number of shares in issue this year was 283.5. Marriott International Inc's number of shares in issue last year was 303.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. 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
=2049/14016
=0.14619007

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1787/12935
=0.1381523

Marriott International Inc's gross margin of this year was 0.14619007. Marriott International Inc's gross margin of last year was 0.1381523. ==> This year's gross margin is higher. ==> Score 1.

Question 9. 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 (Mar14)
=14016/6665
=2.10292573

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=12935/6523
=1.98298329

Marriott International Inc's asset turnover of this year was 2.10292573. Marriott International Inc's asset turnover of last year was 1.98298329. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

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

Marriott International Inc 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.

Marriott International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111011111
Question 2 1111111111
Question 3 1010010111
Question 4 1111111111
Question 5 0000101000
Question 6 1001010110
Question 7 1111101111
Question 8 1110011111
Question 9 1110010111
F-score 8675476887

Marriott International Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111111
Question 2 1111111111
Question 3 1111110011
Question 4 1111111111
Question 5 0000010000
Question 6 1111101001
Question 7 0111111111
Question 8 1110111111
Question 9 1111100011
F-score 7887876578
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