* 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.
Competitive Comparison of Mahindra & Mahindra Financial Services's Piotroski F-Score
For the Credit Services subindustry, Mahindra & Mahindra Financial Services'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.
Mahindra & Mahindra Financial Services's Piotroski F-Score Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Mahindra & Mahindra Financial Services's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Mahindra & Mahindra Financial Services'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.
*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.
Mahindra & Mahindra Financial Services's current Net Income (TTM) was 232.79.
==> 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.
Mahindra & Mahindra Financial Services's current Cash Flow from Operations (TTM) was -2,222.14.
==> Negative ==> Score 0.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Mahindra & Mahindra Financial Services's return on assets of this year was 0.01822448. Mahindra & Mahindra Financial Services's return on assets of last year was 0.02290116.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Mahindra & Mahindra Financial Services's gearing of this year was 0.79337112. Mahindra & Mahindra Financial Services's gearing of last year was 0.77740292.
==> 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
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
Mahindra & Mahindra Financial Services's current ratio of this year was 1.19254567. Mahindra & Mahindra Financial Services's current ratio of last year was 1.2164936.
==> 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.
Mahindra & Mahindra Financial Services's number of shares in issue this year was 0. Mahindra & Mahindra Financial Services's number of shares in issue last year was 0.
==> 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.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
Mahindra & Mahindra Financial Services's net margin of this year was 0.23733541. Mahindra & Mahindra Financial Services's net margin of last year was 0.27806839.
==> Last year's net 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
Mahindra & Mahindra Financial Services's asset turnover of this year was 0.07678785. Mahindra & Mahindra Financial Services's asset turnover of last year was 0.082358.
==> 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
+
0
+
0
+
0
+
0
+
0
+
1
+
0
+
0
=
2
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Mahindra & Mahindra Financial Services 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.
Mahindra & Mahindra Financial Services Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Mahindra & Mahindra Financial Services's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Mahindra & Mahindra Financial Services Ltd is a subsidiary of the Indian conglomerate Mahinda & Mahindra. The company is a nonbanking financial company that serves the financing needs of a sizable population residing in nonmetropolitan areas of India. The company provides a wide range of retail products and services, including financing vehicles for commercial and personal use, tractors, small to medium enterprise loans, and other financial products. The company also operates in other niche markets. It has introduced mutual fund distributions, fixed deposit products, and personal loans. The company's main source of revenue is interest income from its loans.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MHZNY has been successfully added to your 