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athenahealth (athenahealth) Piotroski F-Score : 0 (As of Apr. 27, 2024)


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What is athenahealth Piotroski F-Score?

The zones of discrimination were as such:

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

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

The historical rank and industry rank for athenahealth's Piotroski F-Score or its related term are showing as below:


athenahealth Piotroski F-Score Historical Data

The historical data trend for athenahealth's Piotroski F-Score can be seen below:

* 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.

* Premium members only.

athenahealth Piotroski F-Score Chart

athenahealth Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 5.00 6.00 7.00 8.00

athenahealth Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 8.00 8.00 8.00 7.00

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.

This Year (Sep18) TTM:Last Year (Sep17) TTM:
Net Income was 31.6 + 31.1 + 36.4 + 26.4 = $126 Mil.
Cash Flow from Operations was 84.5 + 30.2 + 117.8 + 110.3 = $343 Mil.
Revenue was 329.2 + 329.4 + 323.3 + 329.5 = $1,311 Mil.
Gross Profit was 182.9 + 175.4 + 171.3 + 175.1 = $705 Mil.
Average Total Assets from the begining of this year (Sep17)
to the end of this year (Sep18) was
(1284.3 + 1332.3 + 1447.3 + 1526.4 + 1589) / 5 = $1435.86 Mil.
Total Assets at the begining of this year (Sep17) was $1,284 Mil.
Long-Term Debt & Capital Lease Obligation was $232 Mil.
Total Current Assets was $614 Mil.
Total Current Liabilities was $224 Mil.
Net Income was 9.807 + -1.4 + 9.9 + 13 = $31 Mil.

Revenue was 288.141 + 285.4 + 301.1 + 304.6 = $1,179 Mil.
Gross Profit was -245.359 + 141 + 157.3 + 160.6 = $214 Mil.
Average Total Assets from the begining of last year (Sep16)
to the end of last year (Sep17) was
(1154.688 + 1189.2 + 1206.1 + 1244.1 + 1284.3) / 5 = $1215.6776 Mil.
Total Assets at the begining of last year (Sep16) was $1,155 Mil.
Long-Term Debt & Capital Lease Obligation was $258 Mil.
Total Current Assets was $329 Mil.
Total Current Liabilities was $198 Mil.

*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.

athenahealth's current Net Income (TTM) was 126. ==> 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.

athenahealth's current Cash Flow from Operations (TTM) was 343. ==> 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/Total Assets (Sep17)
=125.5/1284.3
=0.0977186

ROA (Last Year)=Net Income/Total Assets (Sep16)
=31.307/1154.688
=0.02711295

athenahealth's return on assets of this year was 0.0977186. athenahealth's return on assets of last year was 0.02711295. ==> 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.

athenahealth's current Net Income (TTM) was 126. athenahealth's current Cash Flow from Operations (TTM) was 343. ==> 343 > 126 ==> 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: Sep18)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep17 to Sep18
=232.3/1435.86
=0.16178458

Gearing (Last Year: Sep17)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep16 to Sep17
=258.1/1215.6776
=0.21230958

athenahealth's gearing of this year was 0.16178458. athenahealth's gearing of last year was 0.21230958. ==> 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

Current Ratio (This Year: Sep18)=Total Current Assets/Total Current Liabilities
=614.4/224
=2.74285714

Current Ratio (Last Year: Sep17)=Total Current Assets/Total Current Liabilities
=329.4/197.5
=1.6678481

athenahealth's current ratio of this year was 2.74285714. athenahealth's current ratio of last year was 1.6678481. ==> 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.

athenahealth's number of shares in issue this year was 41.2. athenahealth's number of shares in issue last year was 40.7. ==> 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
=704.7/1311.4
=0.53736465

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=213.541/1179.241
=0.18108343

athenahealth's gross margin of this year was 0.53736465. athenahealth's gross margin of last year was 0.18108343. ==> 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/Total Assets at the Beginning of This Year (Sep17)
=1311.4/1284.3
=1.02110099

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep16)
=1179.241/1154.688
=1.02126375

athenahealth's asset turnover of this year was 1.02110099. athenahealth's asset turnover of last year was 1.02126375. ==> Last year's asset turnover is higher ==> Score 0.

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+1+1+0+1+0
=7

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

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

athenahealth  (NAS:ATHN) Piotroski F-Score 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.


athenahealth Piotroski F-Score Related Terms

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athenahealth (athenahealth) Business Description

Traded in Other Exchanges
N/A
Address
Athenahealth provides healthcare IT (HCIT) services through cloud-based and mobile application products largely for smaller to midsize medical groups and health systems. Their services include revenue cycle and practice management, electronic health records, patient engagement, population health management, and care coordination. The business services segment generates 96% of revenue, which provides cloud-based solutions and support to healthcare providers. Athenahealth is headquartered in Waltham, Massachusetts.
Executives
Brian P Mckeon director IDEXX LABORATORIES, ONE IDEXX DRIVE, WESTBROOK ME 04092
John A Kane director C/O MERCHANTS BANCSHARES, INC., 275 KENNEDY DRIVE, SOUTH BURLINGTON VT 05403
Dev Ittycheria director C/O MONGO DB, INC., 1633 BROADWAY, 38TH FLOOR, NEW YORK NY 10019
Ed Park director 311 ARSENAL STREET WATERTOWN MA 02472
Brandon H Hull director 221 NASSAU STREET, PRINCETON NJ 08542
Thomas J Szkutak director P O BOX 81226, SEATTLE WA 98108-1226
Jeffrey R Immelt director, other: Executive Chairman GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
Marc A Levine officer: Chief Financial Officer C/O ATHENAHEALTH, INC., 311 ARSENAL STREET, WATERTOWN MA 02472
Jacqueline B Kosecoff director 5960 HEISLEY ROAD, MENTOR OH 44060
Amy Abernethy director 311 ARSENAL STREET, WATERTOWN MA 02472
Kristi Ann Matus officer: EVP and CFAO C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Daniel H. Orenstein officer: SVP, GC, and Secretary 311 ARSENAL STREET, WATERTOWN MA 02472
Jeremy Delinsky officer: SVP, Chief Product Officer C/O WAYFAIR INC., 4 COPLEY PLACE, 7TH FLOOR, BOSTON MA 02116
Timothy M Adams officer: CFO & SVP 311 ARSENAL STREET, WATERTOWN MA 02472
Bryan E Roberts director C/O VENROCK ASSOCIATES, 2494 SAND HILL ROAD STE 200, MENLO PARK CA 94025

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