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ATLFF (Atlas Copco AB) Piotroski F-Score : 6 (As of Dec. 14, 2024)


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What is Atlas Copco AB 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

Atlas Copco AB has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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

ATLFF' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Atlas Copco AB was 8. The lowest was 3. And the median was 6.


Atlas Copco AB Piotroski F-Score Historical Data

The historical data trend for Atlas Copco AB'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.

Atlas Copco AB Piotroski F-Score Chart

Atlas Copco AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.00 8.00 7.00 5.00

Atlas Copco AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 4.00 5.00 6.00 6.00 6.00

Competitive Comparison of Atlas Copco AB's Piotroski F-Score

For the Specialty Industrial Machinery subindustry, Atlas Copco AB's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Atlas Copco AB's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Atlas Copco AB's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Atlas Copco AB's Piotroski F-Score falls into.


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 (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 660.876 + 688.867 + 728.712 + 700.948 = $2,779 Mil.
Cash Flow from Operations was 1005.303 + 726.71 + 809.669 + 886.597 = $3,428 Mil.
Revenue was 4382.507 + 4118.122 + 4272.242 + 4213.999 = $16,987 Mil.
Gross Profit was 1918.382 + 1804.194 + 1827.024 + 1831.069 = $7,381 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(17490.618 + 17809.624 + 19110.87 + 18876.323 + 19608.075) / 5 = $18579.102 Mil.
Total Assets at the begining of this year (Sep23) was $17,491 Mil.
Long-Term Debt & Capital Lease Obligation was $2,990 Mil.
Total Current Assets was $9,268 Mil.
Total Current Liabilities was $5,930 Mil.
Net Income was 583.253 + 622.643 + 644.436 + 703.486 = $2,554 Mil.

Revenue was 3859.511 + 3804.874 + 4026.706 + 4013.153 = $15,704 Mil.
Gross Profit was 1638.081 + 1665.664 + 1756.6 + 1720.554 = $6,781 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(15597.841 + 16602.525 + 16793.143 + 17825.352 + 17490.618) / 5 = $16861.8958 Mil.
Total Assets at the begining of last year (Sep22) was $15,598 Mil.
Long-Term Debt & Capital Lease Obligation was $2,819 Mil.
Total Current Assets was $8,384 Mil.
Total Current Liabilities was $5,715 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.

Atlas Copco AB's current Net Income (TTM) was 2,779. ==> 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.

Atlas Copco AB's current Cash Flow from Operations (TTM) was 3,428. ==> 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 (Sep23)
=2779.403/17490.618
=0.15890822

ROA (Last Year)=Net Income/Total Assets (Sep22)
=2553.818/15597.841
=0.16372894

Atlas Copco AB's return on assets of this year was 0.15890822. Atlas Copco AB's return on assets of last year was 0.16372894. ==> 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.

Atlas Copco AB's current Net Income (TTM) was 2,779. Atlas Copco AB's current Cash Flow from Operations (TTM) was 3,428. ==> 3,428 > 2,779 ==> 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: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=2990.322/18579.102
=0.16095084

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=2819.176/16861.8958
=0.16719211

Atlas Copco AB's gearing of this year was 0.16095084. Atlas Copco AB's gearing of last year was 0.16719211. ==> 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: Sep24)=Total Current Assets/Total Current Liabilities
=9268.159/5929.612
=1.56302959

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=8383.552/5714.582
=1.46704553

Atlas Copco AB's current ratio of this year was 1.56302959. Atlas Copco AB's current ratio of last year was 1.46704553. ==> 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.

Atlas Copco AB's number of shares in issue this year was 4882.5. Atlas Copco AB's number of shares in issue last year was 4879.9. ==> 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
=7380.669/16986.87
=0.43449258

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=6780.899/15704.244
=0.43178767

Atlas Copco AB's gross margin of this year was 0.43449258. Atlas Copco AB's gross margin of last year was 0.43178767. ==> 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 (Sep23)
=16986.87/17490.618
=0.97119896

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=15704.244/15597.841
=1.00682165

Atlas Copco AB's asset turnover of this year was 0.97119896. Atlas Copco AB's asset turnover of last year was 1.00682165. ==> 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+0+1+1+1+0+1+0
=6

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

Atlas Copco AB has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Atlas Copco AB  (OTCPK:ATLFF) 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.


Atlas Copco AB Piotroski F-Score Related Terms

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Atlas Copco AB Business Description

Address
Sickla Industrivag 19, Nacka, Stockholm, SWE, SE-105 23
Atlas Copco is a 140-year-old Swedish company that pioneered air compression technology and remains a leading air compressor manufacturer. Atlas Copco is also a leading manufacturer of vacuum pump equipment, industrial power tools, and portable power and air compression equipment. The company's operations match the geographic breadth of its customers, with a presence in 180 countries. Atlas Copco's revenue is derived from three sources: initial equipment sales, spare parts, and maintenance.

Atlas Copco AB Headlines

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