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Sunoco Logistics Partners LP (NYSE:SXL)
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 = 8 or 9
Bad or low score = 0 or 1

Sunoco Logistics Partners LP has an F-score of 3 indicating the company's financial situation is typical for a stable company.

SXL' s 10-Year Piotroski F-Score Range
Min: 3   Max: 7
Current: 3

3
7

During the past 13 years, the highest Piotroski F-Score of Sunoco Logistics Partners LP was 7. The lowest was 3. And the median was 5.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 78 + 102 + 107 + 156 = $443 Mil.
Cash Flow from Operations was 143 + 288 + -125 + 346 = $652 Mil.
Revenue was 4528 + 4288 + 4477 + 4821 = $18,114 Mil.
Gross Profit was 241 + 248 + 267 + 304 = $1,060 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(11400 + 11498 + 11897 + 12933 + 13454) / 5 = $12,236 Mil.
Total Assets was $13,454 Mil.
Long-Term Debt was $3,368 Mil.
Total Current Assets was $3,517 Mil.
Total Current Liabilities was $3,261 Mil.
Net Income was 134 + 278 + 140 + 143 = $695 Mil.

Revenue was 3207 + 3194 + 3512 + 4311 = $14,224 Mil.
Gross Profit was 249 + 261 + 288 + 288 = $1,086 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(5188 + 5420 + 0 + 11414 + 11400) / 5 = $6,684 Mil.
Total Assets was $11,400 Mil.
Long-Term Debt was $2,314 Mil.
Total Current Assets was $3,127 Mil.
Total Current Liabilities was $2,432 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Sunoco Logistics Partners LP's current net income (ttm) was 443. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Sunoco Logistics Partners LP's current cash flow from operations (ttm) was 652. ==> 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)/Average Total Assets from Jun13 to Jun14
=443/12236.4
=0.03620346

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=695/6684.4
=0.10397343

Sunoco Logistics Partners LP's return on assets of this year was 0.03620346. Sunoco Logistics Partners LP's return on assets of last year was 0.10397343. ==> 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.

Sunoco Logistics Partners LP's current net income (ttm) was 443. Sunoco Logistics Partners LP's current cash flow from operations (ttm) was 652. ==> 652 > 443 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=3368/13454
=0.25033447

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=2314/11400
=0.20298246

Sunoco Logistics Partners LP's gearing of this year was 0.25033447. Sunoco Logistics Partners LP's gearing of last year was 0.20298246. ==> 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: Jun14)=Total Current Assets/Total Current Liabilities
=3517/3261
=1.07850353

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=3127/2432
=1.28577303

Sunoco Logistics Partners LP's current ratio of this year was 1.07850353. Sunoco Logistics Partners LP's current ratio of last year was 1.28577303. ==> Last year's current ratio is higher ==> Score 0.

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.

Sunoco Logistics Partners LP's number of shares in issue this year was 209.6. Sunoco Logistics Partners LP's number of shares in issue last year was 208.6. ==> There is larger 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: TTM)=Gross Profit/Revenue
=1060/18114
=0.05851827

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1086/14224
=0.07634983

Sunoco Logistics Partners LP's gross margin of this year was 0.05851827. Sunoco Logistics Partners LP's gross margin of last year was 0.07634983. ==> 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 average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=18114/12236.4
=1.48033735

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=14224/6684.4
=2.12793968

Sunoco Logistics Partners LP's asset turnover of this year was 1.48033735. Sunoco Logistics Partners LP's asset turnover of last year was 2.12793968. ==> 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+0+0+0+0
=3

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sunoco Logistics Partners LP has an F-score of 3 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.

Sunoco Logistics Partners LP Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 11111111
Q2 11111111
Q3 00111110
Q4 11111001
Q5 11010101
Q6 00001100
Q7 00000000
Q8 00001101
Q9 11111011
F-score 55567646

Sunoco Logistics Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 11111111
Q2 11111111
Q3 00111000
Q4 11100011
Q5 00111100
Q6 01011100
Q7 00000000
Q8 11111000
Q9 11110000
F-score 5670764433
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