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Sirona Dental Systems Inc (NAS:SIRO)
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 = 8 or 9
Bad or low score = 0 or 1

Sirona Dental Systems Inc has an F-score of 7 indicating the company's financial situation is typical for a stable company.

SIRO' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 8

3
9

During the past 13 years, the highest Piotroski F-Score of Sirona Dental Systems Inc 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 37.3 + 44.171 + 36.235 + 40.55 = $158 Mil.
Cash Flow from Operations was 67.615 + 11.285 + 72.005 + 70.22 = $221 Mil.
Revenue was 282.7 + 298.726 + 278.604 + 283.157 = $1,143 Mil.
Gross Profit was 151.5 + 162.731 + 143.291 + 151.487 = $609 Mil.
Total Assets at the begining of this year (Mar13) was $1,561 Mil.
Total Assets was $1,821 Mil.
Long-Term Debt was $75 Mil.
Total Current Assets was $598 Mil.
Total Current Liabilities was $225 Mil.
Net Income was 31.8 + 38.302 + 34.736 + 30.298 = $135 Mil.

Revenue was 267.3 + 272.404 + 247.364 + 242.007 = $1,029 Mil.
Gross Profit was 144.7 + 151.871 + 132.079 + 128.44 = $557 Mil.
Total Assets at the begining of last year (Mar12) was $1,458 Mil.
Total Assets was $1,561 Mil.
Long-Term Debt was $75 Mil.
Total Current Assets was $443 Mil.
Total Current Liabilities was $195 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.

Sirona Dental Systems Inc's current net income was 158. ==> 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.

Sirona Dental Systems Inc's current cash flow from operations was 221. ==> 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)
=158.256/1561.272
=0.1013635

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=135.136/1457.864
=0.09269452

Sirona Dental Systems Inc's return on assets of this year was 0.1013635. Sirona Dental Systems Inc's return on assets of last year was 0.09269452. ==> 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.

Sirona Dental Systems Inc's current net income was 158. Sirona Dental Systems Inc's current cash flow from operations was 221. ==> 221 > 158 ==> 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
=75.3/1821
=0.04135091

Gearing (Last Year)=Long-Term Debt/Total Assets
=75/1561.272
=0.04803775

Sirona Dental Systems Inc's gearing of this year was 0.04135091. Sirona Dental Systems Inc's gearing of last year was 0.04803775. ==> 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
=598/225.3
=2.65423879

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=443.37/194.604
=2.27831905

Sirona Dental Systems Inc's current ratio of this year was 2.65423879. Sirona Dental Systems Inc's current ratio of last year was 2.27831905. ==> 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.

Sirona Dental Systems Inc's number of shares in issue this year was 56.2. Sirona Dental Systems Inc's number of shares in issue last year was 56.2. ==> There is more number of shares in issue this year. ==> Score 0.

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
=609.009/1143.187
=0.53272912

Gross Margin (Last Year)=Gross Profit/Revenue
=557.09/1029.075
=0.54135024

Sirona Dental Systems Inc's gross margin of this year was 0.53272912. Sirona Dental Systems Inc's gross margin of last year was 0.54135024. ==> Last year's gross margin is higher ==> Score 0.

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)
=1143.187/1561.272
=0.73221514

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=1029.075/1457.864
=0.7058786

Sirona Dental Systems Inc's asset turnover of this year was 0.73221514. Sirona Dental Systems Inc's asset turnover of last year was 0.7058786. ==> 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+0+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sirona Dental Systems Inc has an F-score of 7 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 own currency.

Sirona Dental Systems Inc Annual Data

Mar05Mar06Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
Q1 1111111111
Q2 1111111111
Q3 0001011111
Q4 1111111111
Q5 0001011101
Q6 1100111011
Q7 0000100011
Q8 1000011111
Q9 0010101101
F-score 5445678779

Sirona Dental Systems Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1001111111
Q4 1111111111
Q5 0000111111
Q6 1111111111
Q7 0111111111
Q8 0001111100
Q9 1100111111
F-score 6657999988
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