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Invesco Ltd (NYSE:IVZ)
Piotroski F-Score
5 (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

Invesco Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

IVZ' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 9
Current: 5

2
9

During the past 13 years, the highest Piotroski F-Score of Invesco Ltd was 9. The lowest was 2. And the median was 5.


Definition

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 (Mar17) TTM:Last Year (Mar16) TTM:
Net Income was 225.5 + 241.2 + 226.5 + 212 = $905 Mil.
Cash Flow from Operations was 206.8 + 367.5 + -412.8 + 315.9 = $477 Mil.
Revenue was 1189.4 + 1201.6 + 1194.7 + 1192.6 = $4,778 Mil.
Gross Profit was 1189.4 + 1201.6 + 1194.7 + 1192.6 = $4,778 Mil.
Average Total Assets from the begining of this year (Mar16)
to the end of this year (Mar17) was
(22658.2 + 23502.8 + 24137.7 + 25734.3 + 26598.9) / 5 = $24526.38 Mil.
Total Assets at the begining of this year (Mar16) was $22,658 Mil.
Long-Term Debt was $6,367 Mil.
Total Current Assets was $13,584 Mil.
Total Current Liabilities was $11,310 Mil.
Net Income was 257.3 + 249.3 + 201.9 + 161 = $870 Mil.

Revenue was 1318.1 + 1273.5 + 1239.7 + 1148.7 = $4,980 Mil.
Gross Profit was 1318.1 + 1273.5 + 1239.7 + 1148.7 = $4,980 Mil.
Average Total Assets from the begining of last year (Mar15)
to the end of last year (Mar16) was
(21961.2 + 22898.3 + 24962.2 + 25073.2 + 22658.2) / 5 = $23510.62 Mil.
Total Assets at the begining of last year (Mar15) was $21,961 Mil.
Long-Term Debt was $5,134 Mil.
Total Current Assets was $4,280 Mil.
Total Current Liabilities was $8,598 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.

Invesco Ltd's current net income (TTM) was 905. ==> 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.

Invesco Ltd's current cash flow from operations (TTM) was 477. ==> 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 (TTM)/Total Assets at the Beginning of This Year (Mar16)
=905.2/22658.2
=0.03995022

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=869.5/21961.2
=0.03959255

Invesco Ltd's return on assets of this year was 0.03995022. Invesco Ltd's return on assets of last year was 0.03959255. ==> 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.

Invesco Ltd's current net income (TTM) was 905. Invesco Ltd's current cash flow from operations (TTM) was 477. ==> 477 <= 905 ==> 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: Mar17)=Long-Term Debt/Average Total Assets from Mar16 to Mar17
=6366.5/24526.38
=0.25957765

Gearing (Last Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=5134.4/23510.62
=0.21838641

Invesco Ltd's gearing of this year was 0.25957765. Invesco Ltd's gearing of last year was 0.21838641. ==> 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: Mar17)=Total Current Assets/Total Current Liabilities
=13583.8/11310.3
=1.20101147

Current Ratio (Last Year: Mar16)=Total Current Assets/Total Current Liabilities
=4280/8598.1
=0.49778439

Invesco Ltd's current ratio of this year was 1.20101147. Invesco Ltd's current ratio of last year was 0.49778439. ==> 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.

Invesco Ltd's number of shares in issue this year was 395.8. Invesco Ltd's number of shares in issue last year was 407.9. ==> 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
=4778.3/4778.3
=1

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4980/4980
=1

Invesco Ltd's gross margin of this year was 1. Invesco Ltd's gross margin of last year was 1. ==> 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

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Mar16)
=4778.3/22658.2
=0.21088613

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar15)
=4980/21961.2
=0.22676356

Invesco Ltd's asset turnover of this year was 0.21088613. Invesco Ltd's asset turnover of last year was 0.22676356. ==> 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+0+0+1+1+0+0
=5

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

Invesco Ltd has an F-score of 5 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

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

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

Invesco Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Question 1 1111111111
Question 2 1111111111
Question 3 0001001000
Question 4 1110110110
Question 5 1110111011
Question 6 1010000110
Question 7 1000111011
Question 8 1000000000
Question 9 0011011100
F-score 7464566564

Invesco Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Question 1 1111111111
Question 2 1111111111
Question 3 0100000001
Question 4 1110110100
Question 5 0000111110
Question 6 1110101101
Question 7 0111111111
Question 8 0000000000
Question 9 1000000000
F-score 5653655645
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