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

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 5 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: 5

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 (Dec13) TTM:Last Year (Dec12) TTM:
Net Income was 59.997 + 54.469 + 54.581 + 49.808 = $219 Mil.
Cash Flow from Operations was 136.227 + 106.365 + 134.655 + 37.388 = $415 Mil.
Revenue was 599.218 + 556.502 + 576.293 + 556.111 = $2,288 Mil.
Gross Profit was 319.454 + 295.053 + 302.401 + 286.914 = $1,204 Mil.
Total Assets at the begining of this year (Dec12) was $3,469 Mil.
Total Assets was $3,701 Mil.
Long-Term Debt was $652 Mil.
Total Current Assets was $837 Mil.
Total Current Liabilities was $577 Mil.
Net Income was 33.186 + 53.364 + 53.692 + 50.818 = $191 Mil.

Revenue was 515.523 + 504.763 + 517.56 + 502.267 = $2,040 Mil.
Gross Profit was 256.464 + 262.868 + 267.696 + 259.15 = $1,046 Mil.
Total Assets at the begining of last year (Dec11) was $2,652 Mil.
Total Assets was $3,469 Mil.
Long-Term Debt was $873 Mil.
Total Current Assets was $816 Mil.
Total Current Liabilities was $469 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 219. ==> 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 415. ==> 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 (Dec12)
=218.855/3469.104
=0.0630869

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Dec11)
=191.06/2652.475
=0.07203084

Trimble Navigation Ltd.'s return on assets of this year was 0.0630869. Trimble Navigation Ltd.'s return on assets of last year was 0.07203084. ==> 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 was 219. Trimble Navigation Ltd.'s current cash flow from operations was 415. ==> 415 > 219 ==> 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
=652.056/3700.84
=0.17619135

Gearing (Last Year)=Long-Term Debt/Total Assets
=873.066/3469.104
=0.25166902

Trimble Navigation Ltd.'s gearing of this year was 0.17619135. Trimble Navigation Ltd.'s gearing of last year was 0.25166902. ==> 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
=837.017/576.99
=1.45066119

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=815.973/468.67
=1.74103954

Trimble Navigation Ltd.'s current ratio of this year was 1.45066119. Trimble Navigation Ltd.'s current ratio of last year was 1.74103954. ==> 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 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 262.8. Trimble Navigation Ltd.'s number of shares in issue last year was 258.2. ==> 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
=1203.822/2288.124
=0.52611747

Gross Margin (Last Year)=Gross Profit/Revenue
=1046.178/2040.113
=0.51280395

Trimble Navigation Ltd.'s gross margin of this year was 0.52611747. Trimble Navigation Ltd.'s gross margin of last year was 0.51280395. ==> 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 (Dec12)
=2288.124/3469.104
=0.65957204

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Dec11)
=2040.113/2652.475
=0.76913562

Trimble Navigation Ltd.'s asset turnover of this year was 0.65957204. Trimble Navigation Ltd.'s asset turnover of last year was 0.76913562. ==> 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+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Trimble Navigation Ltd. has an F-score of 5 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Q1 1111111111
Q2 1111111111
Q3 1110000000
Q4 1111111111
Q5 0000100001
Q6 0000000000
Q7 0000000000
Q8 1111111111
Q9 1111000010
F-score 6665544455
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