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Sunoco Logistics Partners LP (NYSE:SXL)
Piotroski F-Score
4 (As of Today)

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 4 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: 4

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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 102 + 107 + 156 + 155 = $520 Mil.
Cash Flow from Operations was 288 + -125 + 346 + 105 = $614 Mil.
Revenue was 4288 + 4477 + 4821 + 4915 = $18,501 Mil.
Gross Profit was 248 + 267 + 304 + 334 = $1,153 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(11498 + 11897 + 12933 + 13454 + 14161) / 5 = $12,789 Mil.
Total Assets as of Sep13 was $11,498 Mil.
Long-Term Debt was $3,640 Mil.
Total Current Assets was $3,508 Mil.
Total Current Liabilities was $3,163 Mil.
Net Income was 278 + 140 + 143 + 78 = $639 Mil.

Revenue was 3194 + 3512 + 4311 + 4528 = $15,545 Mil.
Gross Profit was 261 + 288 + 288 + 241 = $1,078 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(5420 + 0 + 11414 + 11400 + 11498) / 5 = $7,946 Mil.
Total Assets as of Sep12 was $5,420 Mil.
Long-Term Debt was $2,309 Mil.
Total Current Assets was $2,992 Mil.
Total Current Liabilities was $2,543 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.

Sunoco Logistics Partners LP's current net income (ttm) was 520. ==> 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.

Sunoco Logistics Partners LP's current cash flow from operations (ttm) was 614. ==> 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)
=520/11498
=0.04522526

ROA (Last Year)=Net Income (TTM)/Beginning of Last Year Total Assets (Sep12)
=639/5420
=0.11789668

Sunoco Logistics Partners LP's return on assets of this year was 0.04522526. Sunoco Logistics Partners LP's return on assets of last year was 0.11789668. ==> 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 520. Sunoco Logistics Partners LP's current cash flow from operations (ttm) was 614. ==> 614 > 520 ==> 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
=3640/12788.6
=0.2846285

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=2309/7946.4
=0.29057183

Sunoco Logistics Partners LP's gearing of this year was 0.2846285. Sunoco Logistics Partners LP's gearing of last year was 0.29057183. ==> This year is lower or equal to last year. ==> 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: Sep14)=Total Current Assets/Total Current Liabilities
=3508/3163
=1.10907366

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=2992/2543
=1.17656311

Sunoco Logistics Partners LP's current ratio of this year was 1.10907366. Sunoco Logistics Partners LP's current ratio of last year was 1.17656311. ==> 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 213.8. 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
=1153/18501
=0.06232096

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1078/15545
=0.06934706

Sunoco Logistics Partners LP's gross margin of this year was 0.06232096. Sunoco Logistics Partners LP's gross margin of last year was 0.06934706. ==> 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)
=18501/11498
=1.60906245

Asset Turnover (Last Year)=Revenue (TTM)/Beginning of Last Year Total Assets (Sep12)
=15545/5420
=2.86808118

Sunoco Logistics Partners LP's asset turnover of this year was 1.60906245. Sunoco Logistics Partners LP's asset turnover of last year was 2.86808118. ==> 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+1+0+0+0+0
=4

Good or high score = 8 or 9

Bad or low score = 0 or 1

Sunoco Logistics Partners LP has an F-score of 4 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 11010001
Q6 00001100
Q7 00000000
Q8 00001101
Q9 11111011
F-score 55567546

Sunoco Logistics Partners LP Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 11111111
Q2 11111111
Q3 01111000
Q4 11000111
Q5 01001111
Q6 10111000
Q7 00000000
Q8 11111000
Q9 11011000
F-score 6705674444
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