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Occidental Petroleum Corp (NYSE:OXY)
Piotroski F-Score
9 (As of Today)

Good Sign:

Piotroski F-Score of 9 is 9, indicating very healthy situation.

The zones of discrimination were as such:

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

Occidental Petroleum Corp has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

OXY' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 9

3
9

During the past 13 years, the highest Piotroski F-Score of Occidental Petroleum Corp was 9. The lowest was 3. And the median was 7.


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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 1390 + 1643 + 1583 + 1322 = $5,938 Mil.
Cash Flow from Operations was 2697 + 3141 + 3561 + 3513 = $12,912 Mil.
Revenue was 6118 + 7233 + 6475 + 6121 = $25,947 Mil.
Gross Profit was 2920 + 9202 + 3261 + 2941 = $18,324 Mil.
Total Assets at the begining of this year (Mar13) was $65,824 Mil.
Total Assets was $69,275 Mil.
Long-Term Debt was $6,877 Mil.
Total Current Assets was $10,899 Mil.
Total Current Liabilities was $8,190 Mil.
Net Income was 1355 + 336 + 1375 + 1328 = $4,394 Mil.

Revenue was 5907 + 6187 + 5991 + 5792 = $23,877 Mil.
Gross Profit was 2770 + 7529 + 2815 + 2732 = $15,846 Mil.
Total Assets at the begining of last year (Mar12) was $61,622 Mil.
Total Assets was $65,824 Mil.
Long-Term Debt was $7,024 Mil.
Total Current Assets was $10,154 Mil.
Total Current Liabilities was $7,786 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.

Occidental Petroleum Corp's current net income was 5,938. ==> 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.

Occidental Petroleum Corp's current cash flow from operations was 12,912. ==> Positive ==> Score 1.

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 (Mar13)
=5938/65824
=0.09021026

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=4394/61622
=0.0713057

Occidental Petroleum Corp's return on assets of this year was 0.09021026. Occidental Petroleum Corp's return on assets of last year was 0.0713057. ==> This year is higher. ==> Score 1.

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.

Occidental Petroleum Corp's current net income was 5,938. Occidental Petroleum Corp's current cash flow from operations was 12,912. ==> 12,912 > 5,938 ==> CFROA > ROA ==> Score 1.

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
=6877/69275
=0.09927102

Gearing (Last Year)=Long-Term Debt/Total Assets
=7024/65824
=0.1067088

Occidental Petroleum Corp's gearing of this year was 0.09927102. Occidental Petroleum Corp's gearing of last year was 0.1067088. ==> This year is lower. ==> Score 1.

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
=10899/8190
=1.33076923

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=10154/7786
=1.30413563

Occidental Petroleum Corp's current ratio of this year was 1.33076923. Occidental Petroleum Corp's current ratio of last year was 1.30413563. ==> 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.

Occidental Petroleum Corp's number of shares in issue this year was 791.7. Occidental Petroleum Corp's number of shares in issue last year was 805.2. ==> There is the same number of shares in issue this year, or fewer. ==> Score 1.

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
=18324/25947
=0.70620881

Gross Margin (Last Year)=Gross Profit/Revenue
=15846/23877
=0.66365121

Occidental Petroleum Corp's gross margin of this year was 0.70620881. Occidental Petroleum Corp's gross margin of last year was 0.66365121. ==> 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 (Mar13)
=25947/65824
=0.39418753

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=23877/61622
=0.38747525

Occidental Petroleum Corp's asset turnover of this year was 0.39418753. Occidental Petroleum Corp's asset turnover of last year was 0.38747525. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+1+1+1
=9

Good or high score = 8 or 9

Bad or low score = 0 or 1

Occidental Petroleum Corp has an F-score of 9. 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.

Occidental Petroleum Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1101101101
Q4 1111111111
Q5 1111000001
Q6 1101011001
Q7 0001110111
Q8 1111101101
Q9 1100101100
F-score 8858757748

Occidental Petroleum Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1100000011
Q4 1111111111
Q5 0000001111
Q6 0110000011
Q7 1111111111
Q8 1000001111
Q9 1100000001
F-score 7754446689
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