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NGL Energy Partners LP (NYSE:NGL)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, 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

NGL Energy Partners LP has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

NGL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 7
Current: 7

4
7

During the past 7 years, the highest Piotroski F-Score of NGL Energy Partners LP was 7. 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 (Dec15) TTM:Last Year (Dec14) TTM:
Net Income was 86.778 + -42.401 + -27.043 + 23.481 = $41 Mil.
Cash Flow from Operations was 180.554 + 81.829 + 92.266 + 119.039 = $474 Mil.
Revenue was 3220.771 + 3538.469 + 3193.195 + 2685.006 = $12,637 Mil.
Gross Profit was 287.75 + 215.918 + 187.369 + 251.506 = $943 Mil.
Average Total Assets from the begining of this year (Dec14)
to the end of this year (Dec15) was
(6905.902 + 6547.501 + 6642.651 + 6449.837 + 6564.471) / 5 = $6622.0724 Mil.
Total Assets at the begining of this year (Dec14) was $6,906 Mil.
Long-Term Debt was $3,323 Mil.
Total Current Assets was $1,230 Mil.
Total Current Liabilities was $797 Mil.
Net Income was 42.331 + -39.975 + -19.224 + -10.918 = $-28 Mil.

Revenue was 3975.935 + 3648.614 + 5380.526 + 4552.146 = $17,557 Mil.
Gross Profit was 211.191 + 114.561 + 201.061 + 240.478 = $767 Mil.
Average Total Assets from the begining of last year (Dec13)
to the end of last year (Dec14) was
(4476.978 + 4147.631 + 4265.502 + 6551.679 + 6905.902) / 5 = $5269.5384 Mil.
Total Assets at the begining of last year (Dec13) was $4,477 Mil.
Long-Term Debt was $2,753 Mil.
Total Current Assets was $2,458 Mil.
Total Current Liabilities was $1,901 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 41. ==> 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 474. ==> 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 (Dec14)
=40.815/6905.902
=0.00591016

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=-27.786/4476.978
=-0.00620642

NGL Energy Partners LP's return on assets of this year was 0.00591016. NGL Energy Partners LP's return on assets of last year was -0.00620642. ==> 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.

NGL Energy Partners LP's current net income (TTM) was 41. NGL Energy Partners LP's current cash flow from operations (TTM) was 474. ==> 474 > 41 ==> 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: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=3323.492/6622.0724
=0.50188095

Gearing (Last Year: Dec14)=Long-Term Debt/Average Total Assets from Dec13 to Dec14
=2753.322/5269.5384
=0.52249776

NGL Energy Partners LP's gearing of this year was 0.50188095. NGL Energy Partners LP's gearing of last year was 0.52249776. ==> 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: Dec15)=Total Current Assets/Total Current Liabilities
=1229.559/796.908
=1.54291211

Current Ratio (Last Year: Dec14)=Total Current Assets/Total Current Liabilities
=2457.747/1901.168
=1.29275635

NGL Energy Partners LP's current ratio of this year was 1.54291211. NGL Energy Partners LP's current ratio of last year was 1.29275635. ==> 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 106.2. NGL Energy Partners LP's number of shares in issue last year was 88.5. ==> 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
=942.543/12637.441
=0.07458337

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=767.291/17557.221
=0.0437023

NGL Energy Partners LP's gross margin of this year was 0.07458337. NGL Energy Partners LP's gross margin of last year was 0.0437023. ==> 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 (Dec14)
=12637.441/6905.902
=1.82994792

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec13)
=17557.221/4476.978
=3.92166792

NGL Energy Partners LP's asset turnover of this year was 1.82994792. NGL Energy Partners LP's asset turnover of last year was 3.92166792. ==> 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+1+1+1+1+0+1+0
=7

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

NGL Energy Partners LP has an F-score of 7. 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.

NGL Energy Partners LP Annual Data

Mar12Mar13Mar14Mar15
Question 1 1111
Question 2 1111
Question 3 0100
Question 4 1111
Question 5 1101
Question 6 0011
Question 7 0000
Question 8 1100
Question 9 0000
F-score 5645

NGL Energy Partners LP Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Question 1 1111101111
Question 2 1111111111
Question 3 1000000001
Question 4 1111111111
Question 5 1100001011
Question 6 1011111111
Question 7 0000000000
Question 8 0000000111
Question 9 0001110000
F-score 6445545567
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