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New York Times Co (NYSE:NYT)
Piotroski F-Score
6 (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

New York Times Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NYT' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of New York Times Co was 9. The lowest was 3. 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 local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Net Income was 51.693 + -8.271 + -0.211 + 0.406 = $44 Mil.
Cash Flow from Operations was 67.292 + -20.684 + 52.188 + 44.567 = $143 Mil.
Revenue was 444.686 + 379.515 + 372.63 + 363.547 = $1,560 Mil.
Gross Profit was 288.314 + 221.653 + 219.913 + 206.931 = $937 Mil.
Average Total Assets from the begining of this year (Sep15)
to the end of this year (Sep16) was
(2339.914 + 2417.69 + 2311.987 + 2329.241 + 2356.88) / 5 = $2351.1424 Mil.
Total Assets at the begining of this year (Sep15) was $2,340 Mil.
Long-Term Debt was $246 Mil.
Total Current Assets was $963 Mil.
Total Current Liabilities was $573 Mil.
Net Income was 34.875 + -14.262 + 16.4 + 9.415 = $46 Mil.

Revenue was 444.683 + 384.239 + 382.886 + 367.404 = $1,579 Mil.
Gross Profit was 278.792 + 227.603 + 230.113 + 215.373 = $952 Mil.
Average Total Assets from the begining of last year (Sep14)
to the end of last year (Sep15) was
(2444.11 + 2566.474 + 2360.146 + 2366.215 + 2339.914) / 5 = $2415.3718 Mil.
Total Assets at the begining of last year (Sep14) was $2,444 Mil.
Long-Term Debt was $430 Mil.
Total Current Assets was $914 Mil.
Total Current Liabilities was $324 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.

New York Times Co's current net income (TTM) was 44. ==> 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.

New York Times Co's current cash flow from operations (TTM) was 143. ==> 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 (Sep15)
=43.617/2339.914
=0.01864043

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=46.428/2444.11
=0.01899587

New York Times Co's return on assets of this year was 0.01864043. New York Times Co's return on assets of last year was 0.01899587. ==> 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.

New York Times Co's current net income (TTM) was 44. New York Times Co's current cash flow from operations (TTM) was 143. ==> 143 > 44 ==> 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: Sep16)=Long-Term Debt/Average Total Assets from Sep15 to Sep16
=245.922/2351.1424
=0.10459681

Gearing (Last Year: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=430.007/2415.3718
=0.17802932

New York Times Co's gearing of this year was 0.10459681. New York Times Co's gearing of last year was 0.17802932. ==> 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: Sep16)=Total Current Assets/Total Current Liabilities
=962.75/572.808
=1.68075516

Current Ratio (Last Year: Sep15)=Total Current Assets/Total Current Liabilities
=914.083/323.788
=2.82309103

New York Times Co's current ratio of this year was 1.68075516. New York Times Co's current ratio of last year was 2.82309103. ==> Last year's current ratio is higher ==> Score 0.

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.

New York Times Co's number of shares in issue this year was 162.9. New York Times Co's number of shares in issue last year was 167. ==> 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
=936.811/1560.378
=0.6003744

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=951.881/1579.212
=0.60275694

New York Times Co's gross margin of this year was 0.6003744. New York Times Co's gross margin of last year was 0.60275694. ==> 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 (Sep15)
=1560.378/2339.914
=0.66685271

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep14)
=1579.212/2444.11
=0.64612968

New York Times Co's asset turnover of this year was 0.66685271. New York Times Co's asset turnover of last year was 0.64612968. ==> 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+0+1+1+0+1+0+1
=6

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

New York Times Co has an F-score of 6 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 local exchange's currency.

New York Times Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 0101101111
Question 2 1111111111
Question 3 0101101001
Question 4 1011110011
Question 5 1010010011
Question 6 0001101100
Question 7 1110010000
Question 8 0101100101
Question 9 0110101000
F-score 4656745446

New York Times Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Question 1 1111111111
Question 2 1111111111
Question 3 0000001110
Question 4 1011111111
Question 5 1110001111
Question 6 0001110000
Question 7 0000000111
Question 8 1100011110
Question 9 0000110111
F-score 5444566886
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