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Trimble Navigation Ltd (NAS:TRMB)
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 = 8 or 9
Bad or low score = 0 or 1

Trimble Navigation Ltd has an F-score of 7 indicating the company's financial situation is typical for a stable company.

TRMB' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 7

1
8

During the past 13 years, the highest Piotroski F-Score of Trimble Navigation Ltd was 8. The lowest was 1. 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 (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 68.624 + 59.997 + 54.469 + 54.581 = $238 Mil.
Cash Flow from Operations was 83.395 + 136.227 + 106.365 + 134.655 = $461 Mil.
Revenue was 604.721 + 599.218 + 556.502 + 576.293 = $2,337 Mil.
Gross Profit was 326.892 + 319.454 + 295.053 + 302.401 = $1,244 Mil.
Total Assets at the begining of this year (Mar13) was $3,566 Mil.
Total Assets was $3,778 Mil.
Long-Term Debt was $613 Mil.
Total Current Assets was $931 Mil.
Total Current Liabilities was $563 Mil.
Net Income was 49.808 + 33.186 + 53.364 + 53.692 = $190 Mil.

Revenue was 556.111 + 515.523 + 504.763 + 517.56 = $2,094 Mil.
Gross Profit was 286.914 + 256.464 + 262.868 + 267.696 = $1,074 Mil.
Total Assets at the begining of last year (Mar12) was $2,872 Mil.
Total Assets was $3,566 Mil.
Long-Term Debt was $829 Mil.
Total Current Assets was $890 Mil.
Total Current Liabilities was $556 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.

Trimble Navigation Ltd's current net income was 238. ==> 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.

Trimble Navigation Ltd's current cash flow from operations was 461. ==> 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)
=237.671/3565.721
=0.0666544

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=190.05/2872.072
=0.06617174

Trimble Navigation Ltd's return on assets of this year was 0.0666544. Trimble Navigation Ltd's return on assets of last year was 0.06617174. ==> 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.

Trimble Navigation Ltd's current net income was 238. Trimble Navigation Ltd's current cash flow from operations was 461. ==> 461 > 238 ==> 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
=612.598/3777.583
=0.16216666

Gearing (Last Year)=Long-Term Debt/Total Assets
=829.322/3565.721
=0.23258185

Trimble Navigation Ltd's gearing of this year was 0.16216666. Trimble Navigation Ltd's gearing of last year was 0.23258185. ==> 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
=930.871/562.972
=1.65349431

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=889.95/556.454
=1.59932357

Trimble Navigation Ltd's current ratio of this year was 1.65349431. Trimble Navigation Ltd's current ratio of last year was 1.59932357. ==> 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.

Trimble Navigation Ltd's number of shares in issue this year was 264.8. Trimble Navigation Ltd's number of shares in issue last year was 260.3. ==> 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
=1243.8/2336.734
=0.53228138

Gross Margin (Last Year)=Gross Profit/Revenue
=1073.942/2093.957
=0.51287682

Trimble Navigation Ltd's gross margin of this year was 0.53228138. Trimble Navigation Ltd's gross margin of last year was 0.51287682. ==> This year's gross margin is higher. ==> Score 1.

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)
=2336.734/3565.721
=0.65533282

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=2093.957/2872.072
=0.72907539

Trimble Navigation Ltd's asset turnover of this year was 0.65533282. Trimble Navigation Ltd's asset turnover of last year was 0.72907539. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

Trimble Navigation Ltd 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.

Trimble Navigation Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110001100
Q4 1111111111
Q5 1110011001
Q6 1010110000
Q7 0000110000
Q8 0101001111
Q9 0010001100
F-score 6674567645

Trimble Navigation Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1100000001
Q4 1111111111
Q5 0001000011
Q6 0000000001
Q7 0000000000
Q8 1111111111
Q9 1110000100
F-score 6655444557
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