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Radiant Logistics Inc (AMEX:RLGT)
Piotroski F-Score
3 (As of Today)

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

Radiant Logistics Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

RLGT' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 3

3
8

During the past 10 years, the highest Piotroski F-Score of Radiant Logistics Inc was 8. 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 (Mar15) TTM:Last Year (Mar14) TTM:
Net Income was 2.115 + 1.521 + 0.839 + 1.336 = $5.8 Mil.
Cash Flow from Operations was -1.546 + 1.616 + 2.517 + 4.831 = $7.4 Mil.
Revenue was 102.255 + 98.231 + 105.948 + 102.252 = $408.7 Mil.
Gross Profit was 27.777 + 26.325 + 27.592 + 27.105 = $108.8 Mil.
Average Total Assets from the begining of this year (Mar14)
to the end of this year (Mar15) was
(107.39 + 120.014 + 119.492 + 121.208 + 120.946) / 5 = $117.81 Mil.
Total Assets at the begining of this year (Mar14) was $107.4 Mil.
Long-Term Debt was $9.1 Mil.
Total Current Assets was $71.3 Mil.
Total Current Liabilities was $57.4 Mil.
Net Income was 2.352 + 1.092 + 0.264 + 1.648 = $5.4 Mil.

Revenue was 80.719 + 76.702 + 84.144 + 86.033 = $327.6 Mil.
Gross Profit was 23.062 + 23.221 + 24.307 + 23.931 = $94.5 Mil.
Average Total Assets from the begining of last year (Mar13)
to the end of last year (Mar14) was
(79.431 + 83.753 + 88.253 + 110.19 + 107.39) / 5 = $93.8034 Mil.
Total Assets at the begining of last year (Mar13) was $79.4 Mil.
Long-Term Debt was $5.5 Mil.
Total Current Assets was $60.7 Mil.
Total Current Liabilities was $48.5 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.

Radiant Logistics Inc's current net income (TTM) was 5.8. ==> 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.

Radiant Logistics Inc's current cash flow from operations (TTM) was 7.4. ==> 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 (Mar14)
=5.811/107.39
=0.05411118

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=5.356/79.431
=0.06742959

Radiant Logistics Inc's return on assets of this year was 0.05411118. Radiant Logistics Inc's return on assets of last year was 0.06742959. ==> 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.

Radiant Logistics Inc's current net income (TTM) was 5.8. Radiant Logistics Inc's current cash flow from operations (TTM) was 7.4. ==> 7.4 > 5.8 ==> 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: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=9.133/117.81
=0.07752313

Gearing (Last Year: Mar14)=Long-Term Debt/Average Total Assets from Mar13 to Mar14
=5.488/93.8034
=0.05850534

Radiant Logistics Inc's gearing of this year was 0.07752313. Radiant Logistics Inc's gearing of last year was 0.05850534. ==> 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: Mar15)=Total Current Assets/Total Current Liabilities
=71.339/57.433
=1.24212561

Current Ratio (Last Year: Mar14)=Total Current Assets/Total Current Liabilities
=60.656/48.471
=1.25138743

Radiant Logistics Inc's current ratio of this year was 1.24212561. Radiant Logistics Inc's current ratio of last year was 1.25138743. ==> 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.

Radiant Logistics Inc's number of shares in issue this year was 36.5. Radiant Logistics Inc's number of shares in issue last year was 35.6. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=108.799/408.686
=0.26621661

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=94.521/327.598
=0.2885274

Radiant Logistics Inc's gross margin of this year was 0.26621661. Radiant Logistics Inc's gross margin of last year was 0.2885274. ==> 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 (Mar14)
=408.686/107.39
=3.80562436

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar13)
=327.598/79.431
=4.12430915

Radiant Logistics Inc's asset turnover of this year was 3.80562436. Radiant Logistics Inc's asset turnover of last year was 4.12430915. ==> Last year's asset turnover is higher ==> Score 0.

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+0+0+0+0
=3

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

Radiant Logistics Inc has an F-score of 3. It is a bad or low score, which usually implies poor business operation.


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.

Radiant Logistics Inc Annual Data

Dec04Dec05Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
Question 1 011111
Question 2 111111
Question 3 011011
Question 4 111101
Question 5 011111
Question 6 010011
Question 7 011010
Question 8 100000
Question 9 111001
F-score 487467

Radiant Logistics Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Question 1 1111111111
Question 2 1111111111
Question 3 0011111100
Question 4 0101111101
Question 5 1111111110
Question 6 0011111000
Question 7 0011100000
Question 8 0001110000
Question 9 0000011100
F-score 3468887633
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