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Trimble Navigation Ltd (NAS:TRMB)
Piotroski F-Score
6 (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 6 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: 6

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 (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 59.997 + 68.624 + 77.834 + 11.832 = $218 Mil.
Cash Flow from Operations was 136.227 + 83.395 + 131.193 + 95.876 = $447 Mil.
Revenue was 599.218 + 604.721 + 642.199 + 584.796 = $2,431 Mil.
Gross Profit was 319.454 + 326.892 + 354.571 + 316.773 = $1,318 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(3635.172 + 3700.84 + 3777.583 + 3867.239 + 3819.374) / 5 = $3760.0416 Mil.
Total Assets at the begining of this year (Sep13) was $3,635 Mil.
Long-Term Debt was $578 Mil.
Total Current Assets was $916 Mil.
Total Current Liabilities was $624 Mil.
Net Income was 33.186 + 49.808 + 54.581 + 54.469 = $192 Mil.

Revenue was 515.523 + 556.111 + 576.293 + 556.502 = $2,204 Mil.
Gross Profit was 256.464 + 286.914 + 302.401 + 295.053 = $1,141 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(3021.493 + 3469.104 + 3565.721 + 3633.76 + 3635.172) / 5 = $3465.05 Mil.
Total Assets at the begining of last year (Sep12) was $3,021 Mil.
Long-Term Debt was $704 Mil.
Total Current Assets was $828 Mil.
Total Current Liabilities was $569 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 (TTM) was 218. ==> 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 (TTM) was 447. ==> 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)/Total Assets at the Beginning of This Year (Sep13)
=218.287/3635.172
=0.0600486

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=192.044/3021.493
=0.06355931

Trimble Navigation Ltd's return on assets of this year was 0.0600486. Trimble Navigation Ltd's return on assets of last year was 0.06355931. ==> 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.

Trimble Navigation Ltd's current net income (TTM) was 218. Trimble Navigation Ltd's current cash flow from operations (TTM) was 447. ==> 447 > 218 ==> 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
=577.719/3760.0416
=0.15364697

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=703.862/3465.05
=0.20313185

Trimble Navigation Ltd's gearing of this year was 0.15364697. Trimble Navigation Ltd's gearing of last year was 0.20313185. ==> 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
=916.041/624.268
=1.4673842

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=828.493/569.037
=1.45595629

Trimble Navigation Ltd's current ratio of this year was 1.4673842. Trimble Navigation Ltd's current ratio of last year was 1.45595629. ==> 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 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 264.4. Trimble Navigation Ltd's number of shares in issue last year was 261.1. ==> 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
=1317.69/2430.934
=0.54205092

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1140.832/2204.429
=0.51751814

Trimble Navigation Ltd's gross margin of this year was 0.54205092. Trimble Navigation Ltd's gross margin of last year was 0.51751814. ==> This year's gross margin is higher. ==> Score 1.

Q9. 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 (Sep13)
=2430.934/3635.172
=0.66872599

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=2204.429/3021.493
=0.72958269

Trimble Navigation Ltd's asset turnover of this year was 0.66872599. Trimble Navigation Ltd's asset turnover of last year was 0.72958269. ==> 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+1+0+1+0
=6

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

Trimble Navigation Ltd has an F-score of 6 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 1010001100
F-score 7674567645

Trimble Navigation Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0000000110
Q4 1111111111
Q5 0100001111
Q6 0000000111
Q7 0000000000
Q8 1111111111
Q9 1000010000
F-score 5544455776
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