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Zipcar Inc (NAS:ZIP)
Piotroski F-Score
5 (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

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

ZIP' s 10-Year Piotroski F-Score Range
Min: 5   Max: 5
Current: 5

During the past 5 years, the highest Piotroski F-Score of Zipcar Inc was 5. The lowest was 5. 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 (Dec12) TTM:Last Year (Dec11) TTM:
Net Income was -3.048 + -0.422 + 4.32 + 13.826 = $14.7 Mil.
Cash Flow from Operations was 12.931 + 12.721 + 25.277 + 19.796 = $70.7 Mil.
Revenue was 59.133 + 70.809 + 78.232 + 70.694 = $278.9 Mil.
Gross Profit was 19.405 + 26.879 + 32.418 + 26.553 = $105.3 Mil.
Average Total Assets from the begining of this year (Dec11)
to the end of this year (Dec12) was
(344.538 + 358.916 + 399.328 + 429.636 + 417.293) / 5 = $389.9422 Mil.
Total Assets at the begining of this year (Dec11) was $344.5 Mil.
Long-Term Debt was $94.7 Mil.
Total Current Assets was $94.0 Mil.
Total Current Liabilities was $68.3 Mil.
Net Income was -6.097 + -5.568 + 0.651 + 3.862 = $-7.2 Mil.

Revenue was 49.133 + 61.559 + 68.059 + 62.898 = $241.6 Mil.
Gross Profit was 10.096 + 21.034 + 24.694 + 22.569 = $78.4 Mil.
Average Total Assets from the begining of last year (Dec10)
to the end of last year (Dec11) was
(248.928 + 251.821 + 333.274 + 345.003 + 344.538) / 5 = $304.7128 Mil.
Total Assets at the begining of last year (Dec10) was $248.9 Mil.
Long-Term Debt was $58.9 Mil.
Total Current Assets was $107.9 Mil.
Total Current Liabilities was $56.8 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.

Zipcar Inc's current net income (TTM) was 14.7. ==> 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.

Zipcar Inc's current cash flow from operations (TTM) was 70.7. ==> 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 (Dec11)
=14.676/344.538
=0.04259617

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Dec10)
=-7.152/248.928
=-0.0287312

Zipcar Inc's return on assets of this year was 0.04259617. Zipcar Inc's return on assets of last year was -0.0287312. ==> This year is higher. ==> Score 1.

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.

Zipcar Inc's current net income (TTM) was 14.7. Zipcar Inc's current cash flow from operations (TTM) was 70.7. ==> 70.7 > 14.7 ==> 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: Dec12)=Long-Term Debt/Average Total Assets from Dec11 to Dec12
=94.716/389.9422
=0.24289754

Gearing (Last Year: Dec11)=Long-Term Debt/Average Total Assets from Dec10 to Dec11
=58.908/304.7128
=0.19332302

Zipcar Inc's gearing of this year was 0.24289754. Zipcar Inc's gearing of last year was 0.19332302. ==> 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: Dec12)=Total Current Assets/Total Current Liabilities
=94.04/68.301
=1.37684661

Current Ratio (Last Year: Dec11)=Total Current Assets/Total Current Liabilities
=107.944/56.808
=1.90015491

Zipcar Inc's current ratio of this year was 1.37684661. Zipcar Inc's current ratio of last year was 1.90015491. ==> 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.

Zipcar Inc's number of shares in issue this year was 41. Zipcar Inc's number of shares in issue last year was 39.4. ==> 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
=105.255/278.868
=0.37743664

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=78.393/241.649
=0.32440854

Zipcar Inc's gross margin of this year was 0.37743664. Zipcar Inc's gross margin of last year was 0.32440854. ==> 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 (Dec11)
=278.868/344.538
=0.80939693

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Dec10)
=241.649/248.928
=0.97075861

Zipcar Inc's asset turnover of this year was 0.80939693. Zipcar Inc's asset turnover of last year was 0.97075861. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+0+0+1+0
=5

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

Zipcar Inc 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.

Zipcar Inc Annual Data

Dec08Dec09Dec10Dec11Dec12
Q1 1
Q2 1
Q3 1
Q4 1
Q5 0
Q6 0
Q7 0
Q8 1
Q9 0
F-score 5

Zipcar Inc Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
Q1 111
Q2 111
Q3 111
Q4 111
Q5 000
Q6 000
Q7 010
Q8 111
Q9 000
F-score 0000055555
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