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Exxon Mobil Corporation (NYSE:XOM)
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

Exxon Mobil Corporation has an F-score of 5 indicating the company's financial situation is typical for a stable company.

XOM' s 10-Year Piotroski F-Score Range
Min: 4   Max: 9
Current: 5

4
9

During the past 13 years, the highest Piotroski F-Score of Exxon Mobil Corporation was 9. The lowest was 4. And the median was 7.


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 9100 + 8350 + 7870 + 6860 = $32,180 Mil.
Cash Flow from Operations was 15103 + 10208 + 13431 + 7683 = $46,425 Mil.
Revenue was 106773 + 110860 + 112372 + 106666 = $436,671 Mil.
Gross Profit was 106773 + 30869 + 30201 + 28704 = $196,547 Mil.
Total Assets at the begining of this year (Mar13) was $339,639 Mil.
Total Assets was $353,033 Mil.
Long-Term Debt was $12,144 Mil.
Total Current Assets was $61,864 Mil.
Total Current Liabilities was $70,108 Mil.
Net Income was 9500 + 9950 + 9570 + 15910 = $44,930 Mil.

Revenue was 108357 + 115173 + 115706 + 127363 = $466,599 Mil.
Gross Profit was 31235 + 32025 + 33261 + 43205 = $139,726 Mil.
Total Assets at the begining of last year (Mar12) was $345,152 Mil.
Total Assets was $339,639 Mil.
Long-Term Debt was $7,475 Mil.
Total Current Assets was $62,594 Mil.
Total Current Liabilities was $70,084 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.

Exxon Mobil Corporation's current net income was 32,180. ==> 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.

Exxon Mobil Corporation's current cash flow from operations was 46,425. ==> 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)
=32180/339639
=0.09474766

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=44930/345152
=0.13017453

Exxon Mobil Corporation's return on assets of this year was 0.09474766. Exxon Mobil Corporation's return on assets of last year was 0.13017453. ==> 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.

Exxon Mobil Corporation's current net income was 32,180. Exxon Mobil Corporation's current cash flow from operations was 46,425. ==> 46,425 > 32,180 ==> 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)=Long-Term Debt/Total Assets
=12144/353033
=0.03439905

Gearing (Last Year)=Long-Term Debt/Total Assets
=7475/339639
=0.02200866

Exxon Mobil Corporation's gearing of this year was 0.03439905. Exxon Mobil Corporation's gearing of last year was 0.02200866. ==> Last year is lower than this year ==> Score 0.

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
=61864/70108
=0.88241

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=62594/70084
=0.89312825

Exxon Mobil Corporation's current ratio of this year was 0.88241. Exxon Mobil Corporation's current ratio of last year was 0.89312825. ==> 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 0 if there is larger number of shares in issue this year, 1 otherwise.

Exxon Mobil Corporation's number of shares in issue this year was 4328. Exxon Mobil Corporation's number of shares in issue last year was 4485. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=196547/436671
=0.45010317

Gross Margin (Last Year)=Gross Profit/Revenue
=139726/466599
=0.29945628

Exxon Mobil Corporation's gross margin of this year was 0.45010317. Exxon Mobil Corporation's gross margin of last year was 0.29945628. ==> 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)
=436671/339639
=1.28569157

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=466599/345152
=1.35186527

Exxon Mobil Corporation's asset turnover of this year was 1.28569157. Exxon Mobil Corporation's asset turnover of last year was 1.35186527. ==> 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+0+0+1+1+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Exxon Mobil Corporation 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.

Exxon Mobil Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1110101100
Q4 1111111111
Q5 1001010111
Q6 1100000010
Q7 1111110111
Q8 0010001000
Q9 1101101000
F-score 8766656665

Exxon Mobil Corporation Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1111111111
Q2 1111111111
Q3 0110100000
Q4 1111111111
Q5 0011111100
Q6 0111000001
Q7 1111111111
Q8 0010000011
Q9 0100000000
F-score 4786655555
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