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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: 4   Max: 9
Current: 6

4
9

During the past 13 years, the highest Piotroski F-Score of New York Times Co was 9. The lowest was 4. 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 (Dec16) TTM:Last Year (Dec15) TTM:
Net Income was -8.271 + -0.211 + 0.406 + 37.144 = $29 Mil.
Cash Flow from Operations was -20.684 + 52.188 + 44.567 + 18.176 = $94 Mil.
Revenue was 379.515 + 372.63 + 363.547 + 439.65 = $1,555 Mil.
Gross Profit was 221.653 + 219.913 + 206.931 + 278.741 = $927 Mil.
Average Total Assets from the begining of this year (Dec15)
to the end of this year (Dec16) was
(2417.69 + 2311.987 + 2329.241 + 2356.88 + 2185.395) / 5 = $2320.2386 Mil.
Total Assets at the begining of this year (Dec15) was $2,418 Mil.
Long-Term Debt was $247 Mil.
Total Current Assets was $796 Mil.
Total Current Liabilities was $399 Mil.
Net Income was -14.262 + 16.4 + 9.415 + 51.693 = $63 Mil.

Revenue was 384.239 + 382.886 + 367.404 + 444.686 = $1,579 Mil.
Gross Profit was 227.603 + 230.113 + 215.373 + 288.314 = $961 Mil.
Average Total Assets from the begining of last year (Dec14)
to the end of last year (Dec15) was
(2566.474 + 2360.146 + 2366.215 + 2339.914 + 2417.69) / 5 = $2410.0878 Mil.
Total Assets at the begining of last year (Dec14) was $2,566 Mil.
Long-Term Debt was $243 Mil.
Total Current Assets was $863 Mil.
Total Current Liabilities was $564 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 29. ==> 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 94. ==> 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 (Dec15)
=29.068/2417.69
=0.01202305

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=63.246/2566.474
=0.02464315

New York Times Co's return on assets of this year was 0.01202305. New York Times Co's return on assets of last year was 0.02464315. ==> 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 29. New York Times Co's current cash flow from operations (TTM) was 94. ==> 94 > 29 ==> 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: Dec16)=Long-Term Debt/Average Total Assets from Dec15 to Dec16
=246.978/2320.2386
=0.10644509

Gearing (Last Year: Dec15)=Long-Term Debt/Average Total Assets from Dec14 to Dec15
=242.851/2410.0878
=0.10076438

New York Times Co's gearing of this year was 0.10644509. New York Times Co's gearing of last year was 0.10076438. ==> 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: Dec16)=Total Current Assets/Total Current Liabilities
=796.178/398.737
=1.99674974

Current Ratio (Last Year: Dec15)=Total Current Assets/Total Current Liabilities
=862.532/563.585
=1.53043818

New York Times Co's current ratio of this year was 1.99674974. New York Times Co's current ratio of last year was 1.53043818. ==> 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.

New York Times Co's number of shares in issue this year was 162.8. New York Times Co's number of shares in issue last year was 166.4. ==> 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
=927.238/1555.342
=0.59616342

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=961.403/1579.215
=0.60878538

New York Times Co's gross margin of this year was 0.59616342. New York Times Co's gross margin of last year was 0.60878538. ==> 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 (Dec15)
=1555.342/2417.69
=0.64331738

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec14)
=1579.215/2566.474
=0.61532476

New York Times Co's asset turnover of this year was 0.64331738. New York Times Co's asset turnover of last year was 0.61532476. ==> 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+0+1+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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1011011111
Question 2 1111111111
Question 3 1011010010
Question 4 0111100111
Question 5 0100100110
Question 6 0011111001
Question 7 1100100001
Question 8 1011001010
Question 9 1100010101
F-score 6566554566

New York Times Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 0000011100
Question 4 0111111111
Question 5 1100011110
Question 6 0011100001
Question 7 0000001111
Question 8 0000111100
Question 9 1111101111
F-score 4555668866
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