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Welspun Living (BOM:514162) Piotroski F-Score : 8 (As of Dec. 14, 2024)


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What is Welspun Living Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a 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

Welspun Living has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

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

BOM:514162' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Welspun Living was 8. The lowest was 1. And the median was 5.


Welspun Living Piotroski F-Score Historical Data

The historical data trend for Welspun Living'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.

Welspun Living Piotroski F-Score Chart

Welspun Living Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 8.00 6.00 6.00 8.00

Welspun Living 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 - - 8.00 - -

Competitive Comparison of Welspun Living's Piotroski F-Score

For the Textile Manufacturing subindustry, Welspun Living'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.


Welspun Living's Piotroski F-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Welspun Living's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Welspun Living'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 (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was ₹6,811 Mil.
Cash Flow from Operations was ₹5,328 Mil.
Revenue was ₹86,206 Mil.
Gross Profit was ₹29,667 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (86500.8 + 95500.4) / 2 = ₹91000.6 Mil.
Total Assets at the begining of this year (Mar23) was ₹86,501 Mil.
Long-Term Debt & Capital Lease Obligation was ₹9,162 Mil.
Total Current Assets was ₹53,169 Mil.
Total Current Liabilities was ₹30,961 Mil.
Net Income was ₹1,988 Mil.

Revenue was ₹71,459 Mil.
Gross Profit was ₹22,090 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (94368.5 + 86500.8) / 2 = ₹90434.65 Mil.
Total Assets at the begining of last year (Mar22) was ₹94,369 Mil.
Long-Term Debt & Capital Lease Obligation was ₹10,533 Mil.
Total Current Assets was ₹44,172 Mil.
Total Current Liabilities was ₹26,670 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.

Welspun Living's current Net Income (TTM) was 6,811. ==> 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.

Welspun Living's current Cash Flow from Operations (TTM) was 5,328. ==> 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 (Mar23)
=6811/86500.8
=0.07873916

ROA (Last Year)=Net Income/Total Assets (Mar22)
=1988.3/94368.5
=0.02106953

Welspun Living's return on assets of this year was 0.07873916. Welspun Living's return on assets of last year was 0.02106953. ==> 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.

Welspun Living's current Net Income (TTM) was 6,811. Welspun Living's current Cash Flow from Operations (TTM) was 5,328. ==> 5,328 <= 6,811 ==> CFROA <= ROA ==> Score 0.

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: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=9161.5/91000.6
=0.10067516

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=10532.9/90434.65
=0.11646974

Welspun Living's gearing of this year was 0.10067516. Welspun Living's gearing of last year was 0.11646974. ==> 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: Mar24)=Total Current Assets/Total Current Liabilities
=53168.9/30960.9
=1.71729181

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=44171.7/26669.9
=1.65623793

Welspun Living's current ratio of this year was 1.71729181. Welspun Living's current ratio of last year was 1.65623793. ==> 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.

Welspun Living's number of shares in issue this year was 964.969. Welspun Living's number of shares in issue last year was 984.228. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=29666.8/86205.9
=0.34413886

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=22089.7/71458.8
=0.30912498

Welspun Living's gross margin of this year was 0.34413886. Welspun Living's gross margin of last year was 0.30912498. ==> 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 (Mar23)
=86205.9/86500.8
=0.99659078

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=71458.8/94368.5
=0.75723149

Welspun Living's asset turnover of this year was 0.99659078. Welspun Living's asset turnover of last year was 0.75723149. ==> 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+0+1+1+1+1+1
=8

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

Welspun Living has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Welspun Living  (BOM:514162) 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.


Welspun Living Piotroski F-Score Related Terms

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Welspun Living Business Description

Traded in Other Exchanges
Address
Senapati Bapat Marg, Welspun House, 6th Floor, Kamala Mills Compound, Lower Parel (West), Mumbai, MH, IND, 400013
Welspun Living Ltd Formerly Welspun India Ltd is an India-based company that makes and sells home textiles. The company's products consist of towels, bath robes, bath rugs and mats, area rugs, carpets, bed sheets, utility bedding, and fashion bedding. The company owns several brands, including Christy, Spaces, Welhome, and Others. The company has a world-wide distribution network, with the United States, the United Kingdom, and Europe.

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