Cheniere Energy Piotroski F-Score

How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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.

Cheniere Energy's current Net Income (TTM) was -2,531. ==> Negative ==> Score 0.

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.

Cheniere Energy's current Cash Flow from Operations (TTM) was 6,268. ==> 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.

Cheniere Energy's return on assets of this year was -0.068867. Cheniere Energy's return on assets of last year was -0.01654299. ==> Last year is higher ==> Score 0.

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.

Cheniere Energy's current Net Income (TTM) was -2,531. Cheniere Energy's current Cash Flow from Operations (TTM) was 6,268. ==> 6,268 > -2,531 ==> 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.

Cheniere Energy's gearing of this year was 0.701924. Cheniere Energy's gearing of last year was 0.85028873. ==> This year is lower or equal to last year. ==> Score 1.

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

Cheniere Energy's current ratio of this year was 0.81868714. Cheniere Energy's current ratio of last year was 1.03942144. ==> Last year's current ratio is higher ==> Score 0.

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.

Cheniere Energy's number of shares in issue this year was 255.9. Cheniere Energy's number of shares in issue last year was 253.5. ==> 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.

Cheniere Energy's gross margin of this year was 0.03418093. Cheniere Energy's gross margin of last year was 0.31099092. ==> Last year's gross margin is higher ==> Score 0.

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

Cheniere Energy's asset turnover of this year was 0.68698302. Cheniere Energy's asset turnover of last year was 0.28884673. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

Cheniere Energy has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Cheniere Energy  (AMEX:LNG) Piotroski F-Score Explanation