Switch to:
YRC Worldwide Inc (NAS:YRCW)
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 = 7, 8, 9
Bad or low score = 0, 1, 2, 3

YRC Worldwide Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

YRCW' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 8
Current: 7

3
8

During the past 13 years, the highest Piotroski F-Score of YRC Worldwide Inc was 8. The lowest was 3. 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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 26 + 19.8 + -23.5 + -12 = $10 Mil.
Cash Flow from Operations was 56.9 + 60.4 + 49.3 + -11.1 = $156 Mil.
Revenue was 1258.4 + 1244.9 + 1142.7 + 1120.3 = $4,766 Mil.
Gross Profit was 877.6 + 878.2 + 812.3 + 814.6 = $3,383 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(1966.2 + 1968.6 + 1964.8 + 1894.6 + 1863.8) / 5 = $1931.6 Mil.
Total Assets at the begining of this year (Mar15) was $1,966 Mil.
Long-Term Debt was $1,044 Mil.
Total Current Assets was $753 Mil.
Total Current Liabilities was $575 Mil.
Net Income was -4.9 + 1.2 + 6.2 + -21.6 = $-19 Mil.

Revenue was 1317.6 + 1322.6 + 1217.7 + 1186.4 = $5,044 Mil.
Gross Profit was 865.8 + 880.2 + 825.9 + 824.8 = $3,397 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(2215.1 + 2179.5 + 2046.6 + 1985 + 1966.2) / 5 = $2078.48 Mil.
Total Assets at the begining of last year (Mar14) was $2,215 Mil.
Long-Term Debt was $1,074 Mil.
Total Current Assets was $760 Mil.
Total Current Liabilities was $611 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.

YRC Worldwide Inc's current net income (TTM) was 10. ==> 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.

YRC Worldwide Inc's current cash flow from operations (TTM) was 156. ==> 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 (Mar15)
=10.3/1966.2
=0.00523853

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=-19.1/2215.1
=-0.00862264

YRC Worldwide Inc's return on assets of this year was 0.00523853. YRC Worldwide Inc's return on assets of last year was -0.00862264. ==> This year is higher. ==> Score 1.

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.

YRC Worldwide Inc's current net income (TTM) was 10. YRC Worldwide Inc's current cash flow from operations (TTM) was 156. ==> 156 > 10 ==> 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: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=1044.2/1931.6
=0.54058811

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=1074/2078.48
=0.51672376

YRC Worldwide Inc's gearing of this year was 0.54058811. YRC Worldwide Inc's gearing of last year was 0.51672376. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=753.2/575.1
=1.30968527

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=759.6/610.9
=1.24341136

YRC Worldwide Inc's current ratio of this year was 1.30968527. YRC Worldwide Inc's current ratio of last year was 1.24341136. ==> This year's current ratio is higher. ==> Score 1.

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.

YRC Worldwide Inc's number of shares in issue this year was 32.3. YRC Worldwide Inc's number of shares in issue last year was 30.8. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=3382.7/4766.3
=0.70971194

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3396.7/5044.3
=0.67337391

YRC Worldwide Inc's gross margin of this year was 0.70971194. YRC Worldwide Inc's gross margin of last year was 0.67337391. ==> This year's gross margin is higher. ==> Score 1.

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 (Mar15)
=4766.3/1966.2
=2.42411759

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=5044.3/2215.1
=2.27723353

YRC Worldwide Inc's asset turnover of this year was 2.42411759. YRC Worldwide Inc's asset turnover of last year was 2.27723353. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

YRC Worldwide Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


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.

YRC Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1000000001
Question 2 1110100111
Question 3 0001101111
Question 4 1111111111
Question 5 1100000010
Question 6 1001011101
Question 7 1111000000
Question 8 0001101001
Question 9 0010111110
F-score 6445535556

YRC Worldwide Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 0000001111
Question 2 1000111111
Question 3 1001111111
Question 4 1111111111
Question 5 0110100000
Question 6 1111001111
Question 7 0000000000
Question 8 0000011111
Question 9 1111110101
F-score 5444556767
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK