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Volvo Car AB (LTS:0AAK) Piotroski F-Score : 6 (As of Dec. 14, 2024)


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What is Volvo Car 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

Volvo Car 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 Volvo Car AB's Piotroski F-Score or its related term are showing as below:

LTS:0AAK' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 6   Max: 6
Current: 6

During the past 6 years, the highest Piotroski F-Score of Volvo Car AB was 6. The lowest was 5. And the median was 6.


Volvo Car AB Piotroski F-Score Historical Data

The historical data trend for Volvo Car 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.

Volvo Car AB Piotroski F-Score Chart

Volvo Car AB Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A N/A N/A 5.00 6.00

Volvo Car AB Quarterly Data
Dec18 Dec19 Jun20 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 N/A 6.00 5.00 6.00 6.00

Competitive Comparison of Volvo Car AB's Piotroski F-Score

For the Auto Manufacturers subindustry, Volvo Car 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.


Volvo Car AB's Piotroski F-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Volvo Car 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 3109 + 3342 + 5348 + 4208 = kr16,007 Mil.
Cash Flow from Operations was 18140 + -937 + 12779 + 9212 = kr39,194 Mil.
Revenue was 109441 + 93878 + 101454 + 92783 = kr397,556 Mil.
Gross Profit was 22832 + 18072 + 23182 + 19036 = kr83,122 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(347594 + 356362 + 369620 + 384003 + 386443) / 5 = kr368804.4 Mil.
Total Assets at the begining of this year (Sep23) was kr347,594 Mil.
Long-Term Debt & Capital Lease Obligation was kr31,193 Mil.
Total Current Assets was kr165,185 Mil.
Total Current Liabilities was kr171,650 Mil.
Net Income was 2456 + 3611 + 3332 + 3001 = kr12,400 Mil.

Revenue was 105247 + 95705 + 102152 + 92045 = kr395,149 Mil.
Gross Profit was 16805 + 17099 + 19419 + 18077 = kr71,400 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(315269 + 330924 + 326415 + 343006 + 347594) / 5 = kr332641.6 Mil.
Total Assets at the begining of last year (Sep22) was kr315,269 Mil.
Long-Term Debt & Capital Lease Obligation was kr25,953 Mil.
Total Current Assets was kr161,289 Mil.
Total Current Liabilities was kr159,092 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.

Volvo Car AB's current Net Income (TTM) was 16,007. ==> 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.

Volvo Car AB's current Cash Flow from Operations (TTM) was 39,194. ==> 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)
=16007/347594
=0.04605085

ROA (Last Year)=Net Income/Total Assets (Sep22)
=12400/315269
=0.03933149

Volvo Car AB's return on assets of this year was 0.04605085. Volvo Car AB's return on assets of last year was 0.03933149. ==> 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.

Volvo Car AB's current Net Income (TTM) was 16,007. Volvo Car AB's current Cash Flow from Operations (TTM) was 39,194. ==> 39,194 > 16,007 ==> 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
=31193/368804.4
=0.08457871

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=25953/332641.6
=0.07802091

Volvo Car AB's gearing of this year was 0.08457871. Volvo Car AB's gearing of last year was 0.07802091. ==> 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: Sep24)=Total Current Assets/Total Current Liabilities
=165185/171650
=0.96233615

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=161289/159092
=1.01380962

Volvo Car AB's current ratio of this year was 0.96233615. Volvo Car AB's current ratio of last year was 1.01380962. ==> 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.

Volvo Car AB's number of shares in issue this year was 2977.579. Volvo Car AB's number of shares in issue last year was 2980.681. ==> 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
=83122/397556
=0.20908249

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=71400/395149
=0.18069133

Volvo Car AB's gross margin of this year was 0.20908249. Volvo Car AB's gross margin of last year was 0.18069133. ==> 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)
=397556/347594
=1.14373666

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=395149/315269
=1.25337093

Volvo Car AB's asset turnover of this year was 1.14373666. Volvo Car AB's asset turnover of last year was 1.25337093. ==> 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+1+0+0+1+1+0
=6

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

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

Volvo Car AB  (LTS:0AAK) 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.


Volvo Car AB Piotroski F-Score Related Terms

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Volvo Car AB Business Description

Comparable Companies
Address
VAK Building, Gunnar Engellaus Vag, Gothenburg, SWE, 405 31
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it has a presence in China, the US; Sweden; Germany; the United Kingdom; Japan, and South Korea. It generates maximum revenue from the sale of new cars.

Volvo Car AB Headlines

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