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New York Times Co (NYSE:NYT)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, 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

New York Times Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

NYT' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 8

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 own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 16.4 + 9.415 + 51.693 + -8.271 = $69 Mil.
Cash Flow from Operations was 54.607 + 42.354 + 67.292 + -20.684 = $144 Mil.
Revenue was 382.886 + 367.404 + 444.686 + 379.515 = $1,574 Mil.
Gross Profit was 230.113 + 215.373 + 288.314 + 221.653 = $955 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(2360.146 + 2366.215 + 2339.914 + 2417.69 + 2311.987) / 5 = $2359.1904 Mil.
Total Assets at the begining of this year (Mar15) was $2,360 Mil.
Long-Term Debt was $244 Mil.
Total Current Assets was $846 Mil.
Total Current Liabilities was $513 Mil.
Net Income was 9.188 + -12.499 + 34.875 + -14.262 = $17 Mil.

Revenue was 388.719 + 364.718 + 444.683 + 384.239 = $1,582 Mil.
Gross Profit was 230.775 + 203.541 + 278.792 + 227.603 = $941 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(2507.837 + 2464.492 + 2444.11 + 2566.474 + 2360.146) / 5 = $2468.6118 Mil.
Total Assets at the begining of last year (Mar14) was $2,508 Mil.
Long-Term Debt was $428 Mil.
Total Current Assets was $944 Mil.
Total Current Liabilities was $307 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 69. ==> 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 144. ==> 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 (Mar15)
=69.237/2360.146
=0.0293359

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=17.302/2507.837
=0.00689917

New York Times Co's return on assets of this year was 0.0293359. New York Times Co's return on assets of last year was 0.00689917. ==> 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.

New York Times Co's current net income (TTM) was 69. New York Times Co's current cash flow from operations (TTM) was 144. ==> 144 > 69 ==> 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: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=243.907/2359.1904
=0.10338589

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=427.67/2468.6118
=0.17324312

New York Times Co's gearing of this year was 0.10338589. New York Times Co's gearing of last year was 0.17324312. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=846.128/513.138
=1.64892875

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=943.87/307.438
=3.07011495

New York Times Co's current ratio of this year was 1.64892875. New York Times Co's current ratio of last year was 3.07011495. ==> 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 161. New York Times Co's number of shares in issue last year was 164. ==> 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
=955.453/1574.491
=0.60683294

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=940.711/1582.359
=0.5944991

New York Times Co's gross margin of this year was 0.60683294. New York Times Co's gross margin of last year was 0.5944991. ==> 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 (Mar15)
=1574.491/2360.146
=0.66711593

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=1582.359/2507.837
=0.63096565

New York Times Co's asset turnover of this year was 0.66711593. New York Times Co's asset turnover of last year was 0.63096565. ==> 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+1+1+1+0+1+1+1
=8

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

New York Times Co has an F-score of 8. 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.

New York Times Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 0101101111
Question 2 1111111111
Question 3 0101101001
Question 4 1011110011
Question 5 1010010011
Question 6 0001111100
Question 7 1110010000
Question 8 0101100101
Question 9 0110001010
F-score 4656655456

New York Times Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 0000000011
Question 4 0110111111
Question 5 0111100011
Question 6 1000011100
Question 7 0000000001
Question 8 1110000111
Question 9 0011111101
F-score 4564555668
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