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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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was -19.224 + -10.918 + 86.778 + -42.401 = $14 Mil.
Cash Flow from Operations was -70.841 + 143.475 + 180.554 + 81.829 = $335 Mil.
Revenue was 5380.526 + 4552.146 + 3220.771 + 3538.469 = $16,692 Mil.
Gross Profit was 201.061 + 240.478 + 287.75 + 215.918 = $945 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(4265.502 + 6551.679 + 6905.902 + 6547.501 + 6642.651) / 5 = $6182.647 Mil.
Total Assets at the begining of this year (Jun14) was $4,266 Mil.
Long-Term Debt was $2,968 Mil.
Total Current Assets was $1,587 Mil.
Total Current Liabilities was $1,089 Mil.
Net Income was -0.941 + 23.898 + 42.331 + -39.975 = $25 Mil.

Revenue was 1593.937 + 2743.445 + 3975.935 + 3648.614 = $11,962 Mil.
Gross Profit was 105.087 + 167.416 + 211.191 + 114.561 = $598 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(2353.301 + 3026.493 + 4476.978 + 4147.631 + 4265.502) / 5 = $3653.981 Mil.
Total Assets at the begining of last year (Jun13) was $2,353 Mil.
Long-Term Debt was $1,442 Mil.
Total Current Assets was $1,376 Mil.
Total Current Liabilities was $1,034 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 14. ==> 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 335. ==> 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 (Jun14)
=14.235/4265.502
=0.00333724

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=25.313/2353.301
=0.01075638

NGL Energy Partners LP's return on assets of this year was 0.00333724. NGL Energy Partners LP's return on assets of last year was 0.01075638. ==> 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 14. NGL Energy Partners LP's current cash flow from operations (TTM) was 335. ==> 335 > 14 ==> 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=2968.069/6182.647
=0.48006444

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=1441.875/3653.981
=0.39460386

NGL Energy Partners LP's gearing of this year was 0.48006444. NGL Energy Partners LP's gearing of last year was 0.39460386. ==> 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: Jun15)=Total Current Assets/Total Current Liabilities
=1587.395/1088.7
=1.45806466

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=1376.046/1034.335
=1.33036782

NGL Energy Partners LP's current ratio of this year was 1.45806466. NGL Energy Partners LP's current ratio of last year was 1.33036782. ==> 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 103.9. NGL Energy Partners LP's number of shares in issue last year was 74.1. ==> 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
=945.207/16691.912
=0.05662665

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=598.255/11961.931
=0.05001325

NGL Energy Partners LP's gross margin of this year was 0.05662665. NGL Energy Partners LP's gross margin of last year was 0.05001325. ==> 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 (Jun14)
=16691.912/4265.502
=3.91323507

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=11961.931/2353.301
=5.08304335

NGL Energy Partners LP's asset turnover of this year was 3.91323507. NGL Energy Partners LP's asset turnover of last year was 5.08304335. ==> 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+0+1+0+1+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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111111011
Question 2 1111111111
Question 3 1110000000
Question 4 1111111111
Question 5 1111000010
Question 6 0110111111
Question 7 0000000000
Question 8 1000000001
Question 9 0000011100
F-score 6664455455
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