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Nintendo Co Ltd (OTCPK:NTDOY)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

Nintendo Co Ltd has an F-score of 3 indicating the company's financial situation is typical for a stable company.

NTDOY' s 10-Year Piotroski F-Score Range
Min: 2   Max: 7
Current: 4

2
7

During the past 13 years, the highest Piotroski F-Score of Nintendo Co Ltd was 7. The lowest was 2. And the median was 4.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 92.578136294 + -82.1417612765 + 86.4527003301 + -76.1267620041 = $21 Mil.
Cash Flow from Operations was 0 + -597.739592922 + 0 + -214.642279916 = $-812 Mil.
Revenue was 2915.71977911 + 1176.57768232 + 818.155368054 + 945.078663639 = $5,856 Mil.
Gross Profit was 840.893977506 + 262.227677202 + 365.234316214 + 134.035066184 = $1,602 Mil.
Total Assets at the begining of this year (Dec12) was $17,838 Mil.
Total Assets was $15,295 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $12,925 Mil.
Total Current Liabilities was $2,689 Mil.
Net Income was 477.789754991 + -136.015592371 + -217.824792551 + 63.4938216905 = $187 Mil.

Revenue was 3840.63194772 + 1470.40360447 + 1074.46633306 + 1125.95382268 = $7,511 Mil.
Gross Profit was 930.910193357 + 246.415146875 + 315.145372775 + 277.568552159 = $1,770 Mil.
Total Assets at the begining of last year (Dec11) was $18,959 Mil.
Total Assets was $17,838 Mil.
Long-Term Debt was $0 Mil.
Total Current Assets was $14,911 Mil.
Total Current Liabilities was $3,996 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.

Nintendo Co Ltd's current net income was 21. ==> 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.

Nintendo Co Ltd's current cash flow from operations was -812. ==> Negative ==> Score 0.

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 (Dec12)
=20.7623133435/17837.6451301
=0.00116396

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=187.44319176/18959.0717738
=0.00988673

Nintendo Co Ltd's return on assets of this year was 0.00116396. Nintendo Co Ltd's return on assets of last year was 0.00988673. ==> 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.

Nintendo Co Ltd's current net income was 21. Nintendo Co Ltd's current cash flow from operations was -812. ==> -812 =< 21 ==> 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 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/15295.3229055
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/17837.6451301
=0

Nintendo Co Ltd's gearing of this year was 0. Nintendo Co Ltd's gearing of last year was 0. ==> Last year is lower ==> Score 0.

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
=12925.2994863/2689.44015574
=4.80594426

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=14911.1814772/3995.87909003
=3.73163981

Nintendo Co Ltd's current ratio of this year was 4.80594426. Nintendo Co Ltd's current ratio of last year was 3.73163981. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Nintendo Co Ltd's number of shares in issue this year was 1023. Nintendo Co Ltd's number of shares in issue last year was 1023. ==> There is more 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
=1602.39103711/5855.53149312
=0.27365424

Gross Margin (Last Year)=Gross Profit/Revenue
=1770.03926517/7511.45570792
=0.2356453

Nintendo Co Ltd's gross margin of this year was 0.27365424. Nintendo Co Ltd's gross margin of last year was 0.2356453. ==> 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 (Dec12)
=5855.53149312/17837.6451301
=0.32826819

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=7511.45570792/18959.0717738
=0.39619322

Nintendo Co Ltd's asset turnover of this year was 0.32826819. Nintendo Co Ltd's asset turnover of last year was 0.39619322. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+0+0+0+0+1+0+1+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Nintendo Co Ltd has an F-score of 3 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.

Nintendo Co Ltd Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Q1 111111101
Q2 111111100
Q3 101100001
Q4 101110100
Q5 101101000
Q6 010011110
Q7 110111111
Q8 110110000
Q9 001100000
F-score 756865523

Nintendo Co Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1000011111
Q2 1100110000
Q3 0000011110
Q4 1100110000
Q5 0000000000
Q6 1111000111
Q7 1101111111
Q8 0000000001
Q9 0000001000
F-score 5422334544
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