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Tiffany & Co (NYSE:TIF)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Tiffany & Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

TIF' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of Tiffany & Co 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 (Jan15) TTM:Last Year (Jan14) TTM:
Net Income was 125.609 + 124.12 + 38.268 + 196.182 = $484 Mil.
Cash Flow from Operations was 76.616 + 76.18 + 24.983 + 437.338 = $615 Mil.
Revenue was 1012.132 + 992.93 + 959.589 + 1285.262 = $4,250 Mil.
Gross Profit was 589.526 + 595.163 + 570.871 + 781.615 = $2,537 Mil.
Average Total Assets from the begining of this year (Jan14)
to the end of this year (Jan15) was
(4752.351 + 4825.514 + 4935.825 + 4996.989 + 5180.603) / 5 = $4938.2564 Mil.
Total Assets at the begining of this year (Jan14) was $4,752 Mil.
Long-Term Debt was $883 Mil.
Total Current Assets was $3,611 Mil.
Total Current Liabilities was $658 Mil.
Net Income was 83.577 + 106.781 + 94.61 + -103.599 = $181 Mil.

Revenue was 895.484 + 925.884 + 911.478 + 1298.284 = $4,031 Mil.
Gross Profit was 503.224 + 532.129 + 519.481 + 785.609 = $2,340 Mil.
Average Total Assets from the begining of last year (Jan13)
to the end of last year (Jan14) was
(4630.85 + 4665.756 + 4731.718 + 4879.501 + 4752.351) / 5 = $4732.0352 Mil.
Total Assets at the begining of last year (Jan13) was $4,631 Mil.
Long-Term Debt was $751 Mil.
Total Current Assets was $3,228 Mil.
Total Current Liabilities was $697 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.

Tiffany & Co's current net income (TTM) was 484. ==> 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.

Tiffany & Co's current cash flow from operations (TTM) was 615. ==> 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 (Jan14)
=484.179/4752.351
=0.10188199

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=181.369/4630.85
=0.03916538

Tiffany & Co's return on assets of this year was 0.10188199. Tiffany & Co's return on assets of last year was 0.03916538. ==> This year is higher. ==> Score 1.

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.

Tiffany & Co's current net income (TTM) was 484. Tiffany & Co's current cash flow from operations (TTM) was 615. ==> 615 > 484 ==> 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: Jan15)=Long-Term Debt/Average Total Assets from Jan14 to Jan15
=882.535/4938.2564
=0.17871389

Gearing (Last Year: Jan14)=Long-Term Debt/Average Total Assets from Jan13 to Jan14
=751.154/4732.0352
=0.15873804

Tiffany & Co's gearing of this year was 0.17871389. Tiffany & Co's gearing of last year was 0.15873804. ==> 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: Jan15)=Total Current Assets/Total Current Liabilities
=3611.387/658.033
=5.48815485

Current Ratio (Last Year: Jan14)=Total Current Assets/Total Current Liabilities
=3228.388/696.74
=4.63356202

Tiffany & Co's current ratio of this year was 5.48815485. Tiffany & Co's current ratio of last year was 4.63356202. ==> This year's current ratio is higher. ==> Score 1.

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.

Tiffany & Co's number of shares in issue this year was 130. Tiffany & Co's number of shares in issue last year was 129.3. ==> 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
=2537.175/4249.913
=0.59699457

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2340.443/4031.13
=0.58059229

Tiffany & Co's gross margin of this year was 0.59699457. Tiffany & Co's gross margin of last year was 0.58059229. ==> This year's gross margin is higher. ==> Score 1.

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 (Jan14)
=4249.913/4752.351
=0.89427591

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jan13)
=4031.13/4630.85
=0.87049462

Tiffany & Co's asset turnover of this year was 0.89427591. Tiffany & Co's asset turnover of last year was 0.87049462. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+1
=7

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

Tiffany & Co has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

Tiffany & Co Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Question 1 1111111111
Question 2 1111111111
Question 3 0110111001
Question 4 1010100001
Question 5 1110001010
Question 6 1001110101
Question 7 1111100100
Question 8 1101010011
Question 9 0110011001
F-score 7775665447

Tiffany & Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
Question 1 1111111111
Question 2 1111111111
Question 3 0000000001
Question 4 0011101001
Question 5 0001111100
Question 6 1110000011
Question 7 1100000000
Question 8 0000111111
Question 9 0000000001
F-score 4444545447
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