Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Leapfrog Enterprises has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
The historical rank and industry rank for Leapfrog Enterprises's Piotroski F-Score or its related term are showing as below:
Leapfrog Enterprises Piotroski F-Score Historical Data
The historical data trend for Leapfrog Enterprises'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.
* 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.
*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.
Leapfrog Enterprises's current Net Income (TTM) was -181.8.
==> Negative ==> Score 0.
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.
Leapfrog Enterprises's return on assets of this year was -0.51673588. Leapfrog Enterprises's return on assets of last year was -0.30208855.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Leapfrog Enterprises's gearing of this year was 0. Leapfrog Enterprises's gearing of last year was 0.
==> 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
Leapfrog Enterprises's current ratio of this year was 2.10780947. Leapfrog Enterprises's current ratio of last year was 4.06358845.
==> 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.
Leapfrog Enterprises's number of shares in issue this year was 70.967. Leapfrog Enterprises's number of shares in issue last year was 70.169.
==> 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.
Leapfrog Enterprises's gross margin of this year was 0.10945896. Leapfrog Enterprises's gross margin of last year was 0.30957786.
==> 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
Leapfrog Enterprises's asset turnover of this year was 0.63373784. Leapfrog Enterprises's asset turnover of last year was 0.70852248.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Leapfrog Enterprises has an F-score of 2. It is a bad or low score, which usually implies poor business operation.
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.
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.
Leapfrog Enterprises Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Leapfrog Enterprises's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Leapfrog Enterprises (Leapfrog Enterprises) Business Description
Leapfrog Enterprises Inc was incorporated in 1997 in the State of Delaware. The Company is a developer of educational entertainment for children. It designs, develops, and markets technology-based learning products and related proprietary content for children around the world. It organizes, operates and assesses its business in two segments namely United States and International. The U.S. segment is responsible for the development, design, sales and marketing of multimedia learning platforms and related content, as well as learning toys, sold in the U.S. This segment markets and sells products directly to national and regional mass-market and specialty retailers and other retail stores and distributors. This segment also sells products through online store, App Center, and other Internet-based channels. The International segment is responsible for the localization, sales and marketing of multimedia learning platforms and related content, as well as learning toys, originally developed for the U.S. This segment markets and sells products to national and regional mass-market and specialty retailers and other outlets through the Company's offices in the United Kingdom, France, Canada and Mexico, as well as through distributors in various markets such as Australia, South Africa and Spain. The Company's multimedia learning platform products include features that facilitate learning experiences provided by libraries available in cartridge, print and digitally-downloadable forms. The LeapPad learning tablet line is children's learning tablets for children's aging three to nine, with built-in cameras for taking photographs and videos, and age-appropriate on-board content and utilities. LeapPad tablets are compatible with cartridge and digital content designed for LeapPads from LeapFrog Learning Library. The Company launched LeapPad3, a new version of 5 screen tablet line featuring a capacitive screen and faster processor, and LeapPad Ultra XDi, a revised version of LeapPad Ultra. The learning toys are generally designed for children from birth to age four and combine education, innovation and the joy of play. While the Company's products compete in the learning toy and electronic learning-aids markets, the multimedia learning platforms increasingly compete in a broader arena with a variety of consumer electronics products including tablet computers, eBook readers, mobile devices and gaming platforms. It also faces increased competition from creators of digital applications, software and content for children.
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