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NGL Energy Partners LP (NYSE:NGL)
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

NGL Energy Partners LP has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NGL' s 10-Year Piotroski F-Score Range
Min: 4   Max: 6
Current: 5

4
6

During the past 7 years, the highest Piotroski F-Score of NGL Energy Partners LP was 6. The lowest was 4. 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was -39.975 + -19.224 + -10.918 + 86.778 = $17 Mil.
Cash Flow from Operations was 9.206 + -70.841 + 143.475 + 180.554 = $262 Mil.
Revenue was 3648.614 + 5380.526 + 4552.146 + 3220.771 = $16,802 Mil.
Gross Profit was 114.561 + 201.061 + 240.478 + 287.75 = $844 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(4147.631 + 4265.502 + 6551.679 + 6905.902 + 6547.501) / 5 = $5683.643 Mil.
Total Assets at the begining of this year (Mar14) was $4,148 Mil.
Long-Term Debt was $2,745 Mil.
Total Current Assets was $1,645 Mil.
Total Current Liabilities was $1,113 Mil.
Net Income was -17.633 + -0.941 + 23.898 + 42.331 = $48 Mil.

Revenue was 1385.957 + 1593.937 + 2743.445 + 3975.935 = $9,699 Mil.
Gross Profit was 82.881 + 105.087 + 167.416 + 211.191 = $567 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(2291.618 + 2353.301 + 3026.493 + 4476.978 + 4147.631) / 5 = $3259.2042 Mil.
Total Assets at the begining of last year (Mar13) was $2,292 Mil.
Long-Term Debt was $1,630 Mil.
Total Current Assets was $1,286 Mil.
Total Current Liabilities was $975 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.

NGL Energy Partners LP's current net income (TTM) was 17. ==> 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.

NGL Energy Partners LP's current cash flow from operations (TTM) was 262. ==> 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.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar14)
=16.661/4147.631
=0.00401699

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=47.655/2291.618
=0.02079535

NGL Energy Partners LP's return on assets of this year was 0.00401699. NGL Energy Partners LP's return on assets of last year was 0.02079535. ==> Last year is higher ==> Score 0.

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.

NGL Energy Partners LP's current net income (TTM) was 17. NGL Energy Partners LP's current cash flow from operations (TTM) was 262. ==> 262 > 17 ==> 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
=2745.299/5683.643
=0.48301749

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=1629.834/3259.2042
=0.50007115

NGL Energy Partners LP's gearing of this year was 0.48301749. NGL Energy Partners LP's gearing of last year was 0.50007115. ==> This year is lower or equal to last year. ==> Score 1.

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
=1645.344/1112.996
=1.47830181

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=1286.299/974.884
=1.319438

NGL Energy Partners LP's current ratio of this year was 1.47830181. NGL Energy Partners LP's current ratio of last year was 1.319438. ==> 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.

NGL Energy Partners LP's number of shares in issue this year was 94.3. NGL Energy Partners LP's number of shares in issue last year was 73.2. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=843.85/16802.057
=0.05022302

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=566.575/9699.274
=0.05841417

NGL Energy Partners LP's gross margin of this year was 0.05022302. NGL Energy Partners LP's gross margin of last year was 0.05841417. ==> Last year's gross margin is higher ==> Score 0.

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)
=16802.057/4147.631
=4.05100092

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=9699.274/2291.618
=4.23250036

NGL Energy Partners LP's asset turnover of this year was 4.05100092. NGL Energy Partners LP's asset turnover of last year was 4.23250036. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

NGL Energy Partners LP 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.

NGL Energy Partners LP Annual Data

Mar13Mar14Mar15
Question 1 111
Question 2 111
Question 3 100
Question 4 111
Question 5 101
Question 6 011
Question 7 000
Question 8 100
Question 9 000
F-score 645

NGL Energy Partners LP Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111101
Question 2 1111111111
Question 3 1111000000
Question 4 1111111111
Question 5 0111100001
Question 6 1011011111
Question 7 0000000000
Question 8 1100000000
Question 9 0000001110
F-score 6666445545
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