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Schlumberger NV (NYSE:SLB)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Schlumberger NV has an F-score of 5 indicating the company's financial situation is typical for a stable company.

SLB' s 10-Year Piotroski F-Score Range
Min: 3   Max: 9
Current: 5

3
9

During the past 13 years, the highest Piotroski F-Score of Schlumberger NV 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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 1664 + 1592 + 1595 + 1949 = $6,800 Mil.
Cash Flow from Operations was 3850 + 1635 + 2584 + 3063 = $11,132 Mil.
Revenue was 11966 + 11315 + 12118 + 12725 = $48,124 Mil.
Gross Profit was 2682 + 2570 + 2849 + 3036 = $11,137 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(65123 + 67100 + 66717 + 68086 + 68320) / 5 = $67,069 Mil.
Total Assets as of Sep13 was $65,123 Mil.
Long-Term Debt was $11,626 Mil.
Total Current Assets was $25,473 Mil.
Total Current Liabilities was $12,388 Mil.
Net Income was 1363 + 1259 + 2095 + 1715 = $6,432 Mil.

Revenue was 11210 + 10701 + 12240 + 11651 = $45,802 Mil.
Gross Profit was 2419 + 2259 + 3528 + 2725 = $10,931 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(59441 + 61547 + 61428 + 63251 + 65123) / 5 = $62,158 Mil.
Total Assets as of Sep12 was $59,441 Mil.
Long-Term Debt was $9,916 Mil.
Total Current Assets was $25,093 Mil.
Total Current Liabilities was $12,753 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Schlumberger NV's current net income (ttm) was 6,800. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by beginning of the year total assets.

Score 1 if positive, 0 if negative.

Schlumberger NV's current cash flow from operations (ttm) was 11,132. ==> 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 (TTM)/Beginning of This Year Total Assets (Sep13)
=6800/65123
=0.10441779

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=6432/59441
=0.10820814

Schlumberger NV's return on assets of this year was 0.10441779. Schlumberger NV's return on assets of last year was 0.10820814. ==> Last year is higher ==> Score 0.

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.

Schlumberger NV's current net income (ttm) was 6,800. Schlumberger NV's current cash flow from operations (ttm) was 11,132. ==> 11,132 > 6,800 ==> 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 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=11626/67069.2
=0.17334335

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=9916/62158
=0.15952894

Schlumberger NV's gearing of this year was 0.17334335. Schlumberger NV's gearing of last year was 0.15952894. ==> Last year is lower than this year ==> Score 0.

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: Sep14)=Total Current Assets/Total Current Liabilities
=25473/12388
=2.05626413

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=25093/12753
=1.96761546

Schlumberger NV's current ratio of this year was 2.05626413. Schlumberger NV's current ratio of last year was 1.96761546. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Schlumberger NV's number of shares in issue this year was 1310. Schlumberger NV's number of shares in issue last year was 1333. ==> There is smaller number of shares in issue this year, or the same. ==> 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: TTM)=Gross Profit/Revenue
=11137/48124
=0.23142299

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10931/45802
=0.2386577

Schlumberger NV's gross margin of this year was 0.23142299. Schlumberger NV's gross margin of last year was 0.2386577. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by begining of the year total assets) 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)/Beginning of This Year Total Assets (Sep13)
=48124/65123
=0.73897087

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=45802/59441
=0.77054558

Schlumberger NV's asset turnover of this year was 0.73897087. Schlumberger NV's asset turnover of last year was 0.77054558. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+1+0+1+1+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Schlumberger NV has an F-score of 5 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, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Schlumberger NV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1111001011
Q4 1111111111
Q5 1101101001
Q6 0101110110
Q7 0001110011
Q8 1111001011
Q9 0110001010
F-score 6868657487

Schlumberger NV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0110111100
Q4 1111111111
Q5 0101011000
Q6 1110100111
Q7 1111111111
Q8 0111111100
Q9 0110110100
F-score 5986887855
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