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Trimble Navigation Ltd (NAS:TRMB)
Piotroski F-Score
4 (As of Today)

The zones of discrimination were as such:

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

Trimble Navigation Ltd has an F-score of 4 indicating the company's financial situation is typical for a stable company.

TRMB' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Max: 8
Current: 4

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 (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 55.818 + 34.1 + 25.9 + 37.1 = $153 Mil.
Cash Flow from Operations was 96.583 + 107.2 + 96.8 + 72.4 = $373 Mil.
Revenue was 563.846 + 582.6 + 585.8 + 562.3 = $2,295 Mil.
Gross Profit was 292.544 + 307.2 + 303.9 + 298 = $1,202 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(3819.374 + 3874.348 + 3797.7 + 3780.2 + 3719.9) / 5 = $3798.3044 Mil.
Total Assets at the begining of this year (Sep14) was $3,819 Mil.
Long-Term Debt was $609 Mil.
Total Current Assets was $853 Mil.
Total Current Liabilities was $688 Mil.
Net Income was 59.997 + 68.6 + 77.9 + 11.8 = $218 Mil.

Revenue was 599.218 + 604.7 + 642.2 + 584.8 = $2,431 Mil.
Gross Profit was 319.454 + 326.9 + 354.6 + 316.8 = $1,318 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(3635.172 + 3700.84 + 3777.583 + 3867.239 + 3819.374) / 5 = $3760.0416 Mil.
Total Assets at the begining of last year (Sep13) was $3,635 Mil.
Long-Term Debt was $578 Mil.
Total Current Assets was $916 Mil.
Total Current Liabilities was $624 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.

Trimble Navigation Ltd's current net income (TTM) was 153. ==> 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.

Trimble Navigation Ltd's current cash flow from operations (TTM) was 373. ==> 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 (Sep14)
=152.918/3819.374
=0.04003745

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=218.297/3635.172
=0.06005135

Trimble Navigation Ltd's return on assets of this year was 0.04003745. Trimble Navigation Ltd's return on assets of last year was 0.06005135. ==> Last year is higher ==> Score 0.

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.

Trimble Navigation Ltd's current net income (TTM) was 153. Trimble Navigation Ltd's current cash flow from operations (TTM) was 373. ==> 373 > 153 ==> 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: Sep15)=Long-Term Debt/Average Total Assets from Sep14 to Sep15
=609.1/3798.3044
=0.16036103

Gearing (Last Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=577.719/3760.0416
=0.15364697

Trimble Navigation Ltd's gearing of this year was 0.16036103. Trimble Navigation Ltd's gearing of last year was 0.15364697. ==> 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: Sep15)=Total Current Assets/Total Current Liabilities
=853/687.5
=1.24072727

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=916.041/624.268
=1.4673842

Trimble Navigation Ltd's current ratio of this year was 1.24072727. Trimble Navigation Ltd's current ratio of last year was 1.4673842. ==> Last year's current ratio is higher ==> Score 0.

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.

Trimble Navigation Ltd's number of shares in issue this year was 257.2. Trimble Navigation Ltd's number of shares in issue last year was 264.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=1201.644/2294.546
=0.52369576

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1317.754/2430.918
=0.54208081

Trimble Navigation Ltd's gross margin of this year was 0.52369576. Trimble Navigation Ltd's gross margin of last year was 0.54208081. ==> Last year's gross margin is higher ==> Score 0.

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 (Sep14)
=2294.546/3819.374
=0.60076494

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep13)
=2430.918/3635.172
=0.66872159

Trimble Navigation Ltd's asset turnover of this year was 0.60076494. Trimble Navigation Ltd's asset turnover of last year was 0.66872159. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Trimble Navigation Ltd 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


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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111111
Question 2 1111111111
Question 3 1100011000
Question 4 1111111111
Question 5 1100110011
Question 6 0101100001
Question 7 0001000001
Question 8 1010011111
Question 9 0100011000
F-score 6745576457

Trimble Navigation Ltd Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
Question 1 1111111111
Question 2 1111111111
Question 3 0001100000
Question 4 1111111111
Question 5 0011111110
Question 6 0001111000
Question 7 0000001111
Question 8 1111111100
Question 9 0100000000
F-score 4557767654
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