Switch to:
Salesforce.com Inc  (NYSE:CRM) Piotroski F-Score: 6 (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

Salesforce.com Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NYSE:CRM' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of Salesforce.com Inc was 8. The lowest was 2. And the median was 5.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Salesforce.com Inc Annual Data

Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 5.00 6.00 6.00

Salesforce.com Inc Quarterly Data

Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 7.00 7.00 6.00

Competitive Comparison
* 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.


Salesforce.com Inc Distribution

* The bar in red indicates where Salesforce.com Inc's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jan19) TTM:Last Year (Jan18) TTM:
Net Income was 344 + 299 + 105 + 362 = $1,110 Mil.
Cash Flow from Operations was 1466 + 458 + 143 + 1331 = $3,398 Mil.
Revenue was 3006 + 3281 + 3392 + 3603 = $13,282 Mil.
Gross Profit was 2239 + 2432 + 2503 + 2657 = $9,831 Mil.
Average Total Assets from the begining of this year (Jan18)
to the end of this year (Jan19) was
(21984 + 22963 + 25823 + 26588 + 30737) / 5 = $25619 Mil.
Total Assets at the begining of this year (Jan18) was $21,984 Mil.
Long-Term Debt & Capital Lease Obligation was $3,173 Mil.
Total Current Assets was $10,683 Mil.
Total Current Liabilities was $11,255 Mil.
Net Income was 1 + 46 + 107 + 206 = $360 Mil.

Revenue was 2397 + 2577 + 2701 + 2865 = $10,540 Mil.
Gross Profit was 1746 + 1907 + 1987 + 2127 = $7,767 Mil.
Average Net Income from the begining of last year (Jan17)
to the end of last year (Jan18) was
(17584.923 + 17058.93 + 17418.803 + 17490.036 + 21984) / 5 = $18307.3384 Mil.
Total Assets at the begining of last year (Jan17) was $17,585 Mil.
Long-Term Debt & Capital Lease Obligation was $695 Mil.
Total Current Assets was $9,584 Mil.
Total Current Liabilities was $10,067 Mil.

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.

Salesforce.com Inc's current Net Income (TTM) was 1,110. ==> 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.

Salesforce.com Inc's current Cash Flow from Operations (TTM) was 3,398. ==> 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(Jan18)
=1110/21984
=0.05049127

ROA (Last Year)=Net Income/Total Assets(Jan17)
=360/17584.923
=0.02047208

Salesforce.com Inc's return on assets of this year was 0.05049127. Salesforce.com Inc's return on assets of last year was 0.02047208. ==> 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.

Salesforce.com Inc's current Net Income (TTM) was 1,110. Salesforce.com Inc's current Cash Flow from Operations (TTM) was 3,398. ==> 3,398 > 1,110 ==> 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: Jan19)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jan18 to Jan19
=3173/25619
=0.12385339

Gearing (Last Year: Jan18)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jan17 to Jan18
=695/18307.3384
=0.03796292

Salesforce.com Inc's gearing of this year was 0.12385339. Salesforce.com Inc's gearing of last year was 0.03796292. ==> Last year is lower than this year ==> Score 0.

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: Jan19)=Total Current Assets/Total Current Liabilities
=10683/11255
=0.94917814

Current Ratio (Last Year: Jan18)=Total Current Assets/Total Current Liabilities
=9584/10067
=0.95202146

Salesforce.com Inc's current ratio of this year was 0.94917814. Salesforce.com Inc's current ratio of last year was 0.95202146. ==> 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.

Salesforce.com Inc's number of shares in issue this year was 784. Salesforce.com Inc's number of shares in issue last year was 750. ==> 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
=9831/13282
=0.74017467

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=7767/10540
=0.73690702

Salesforce.com Inc's gross margin of this year was 0.74017467. Salesforce.com Inc's gross margin of last year was 0.73690702. ==> 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 (Jan18)
=13282/21984
=0.60416667

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jan17)
=10540/17584.923
=0.59937709

Salesforce.com Inc's asset turnover of this year was 0.60416667. Salesforce.com Inc's asset turnover of last year was 0.59937709. ==> 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+1+0+0+0+1+1
=6

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

Salesforce.com Inc has an F-score of 6 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


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK