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Amazon.com Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicating very healthy situation.

The zones of discrimination were as such:

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

Amazon.com has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Amazon.com's Piotroski F-Score or its related term are showing as below:

NAS:AMZN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 7

2
8

During the past 13 years, the highest Piotroski F-Score of Amazon.com was 8. The lowest was 2. And the median was 6.


Amazon.com Piotroski F-Score Historical Data

The historical data trend for Amazon.com'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.

Amazon.com Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 7.00 4.00 5.00

Amazon.com Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 5.00 5.00 6.00 8.00 7.00

Competitive Comparison

For the Internet Retail subindustry, Amazon.com'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.

   

Amazon.com Piotroski F-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Amazon.com'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 (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 7222 + 8107 + 7778 + 3156 = $26,263 Mil.
Cash Flow from Operations was 30431 + 4213 + 12715 + 7313 = $54,672 Mil.
Revenue was 125555 + 108518 + 113080 + 110812 = $457,965 Mil.
Gross Profit was 27797 + 29585 + 31266 + 29384 = $118,032 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(282179 + 321195 + 323077 + 360319 + 382406) / 5 = $333835.2 Mil.
Total Assets at the begining of this year (Sep20) was $282,179 Mil.
Long-Term Debt & Capital Lease Obligation was $113,903 Mil.
Total Current Assets was $138,531 Mil.
Total Current Liabilities was $123,994 Mil.
Net Income was 3268 + 2535 + 5243 + 6331 = $17,377 Mil.

Revenue was 87436 + 75452 + 88912 + 96145 = $347,945 Mil.
Gross Profit was 21267 + 19664 + 22446 + 24334 = $87,711 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(199099 + 225248 + 221238 + 258314 + 282179) / 5 = $237215.6 Mil.
Total Assets at the begining of last year (Sep19) was $199,099 Mil.
Long-Term Debt & Capital Lease Obligation was $81,518 Mil.
Total Current Assets was $112,969 Mil.
Total Current Liabilities was $101,912 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.

Amazon.com's current Net Income (TTM) was 26,263. ==> 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.

Amazon.com's current Cash Flow from Operations (TTM) was 54,672. ==> 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 (Sep20)
=26263/282179
=0.09307213

ROA (Last Year)=Net Income/Total Assets (Sep19)
=17377/199099
=0.08727819

Amazon.com's return on assets of this year was 0.09307213. Amazon.com's return on assets of last year was 0.08727819. ==> 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.

Amazon.com's current Net Income (TTM) was 26,263. Amazon.com's current Cash Flow from Operations (TTM) was 54,672. ==> 54,672 > 26,263 ==> 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: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=113903/333835.2
=0.3411953

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=81518/237215.6
=0.34364519

Amazon.com's gearing of this year was 0.3411953. Amazon.com's gearing of last year was 0.34364519. ==> 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

Current Ratio (This Year: Sep21)=Total Current Assets/Total Current Liabilities
=138531/123994
=1.11723954

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=112969/101912
=1.10849556

Amazon.com's current ratio of this year was 1.11723954. Amazon.com's current ratio of last year was 1.10849556. ==> 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.

Amazon.com's number of shares in issue this year was 515. Amazon.com's number of shares in issue last year was 512. ==> 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
=118032/457965
=0.25773149

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=87711/347945
=0.25208294

Amazon.com's gross margin of this year was 0.25773149. Amazon.com's gross margin of last year was 0.25208294. ==> 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 (Sep20)
=457965/282179
=1.62295919

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=347945/199099
=1.74759793

Amazon.com's asset turnover of this year was 1.62295919. Amazon.com's asset turnover of last year was 1.74759793. ==> 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+1+1+0+1+0
=7

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

Amazon.com has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Amazon.com  (NAS:AMZN) 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.


Amazon.com Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Amazon.com's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Amazon.com Business Description

Amazon.com logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
410 Terry Avenue North, Seattle, WA, USA, 98109-5210
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020. Retail related revenue represented approximately 83% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (12%), and advertising services and cobranded credit cards (6%). International segments constituted 27% of Amazon's non-AWS sales in 20202, led by Germany, the United Kingdom, and Japan.
Executives
Wilke Jeffrey A officer: CEO Worldwide Consumer PO BOX 81226 SEATTLE WA 98108-1226
Nooyi Indra K director 700 ANDERSON HILL RD PURCHASE NY 10577
Jassy Andrew R officer: CEO Amazon Web Services PO BOX 81226 SEATTLE WA 98108-1226
Reynolds Shelley officer: Vice President PO BOX 81226 SEATTLE WA 98108
Zapolsky David officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Olsavsky Brian T officer: Senior Vice President and CFO PO BOX 81226 SEATTLE WA 98108
Mcgrath Judith A director PO BOX 81226 SEATTLE WA 98108
Alexander Keith Brian director P.O. BOX 81226 SEATTLE WA 98108-1226
Bezos Jeffrey P director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226 PO BOX 81226 SEATTLE WA 98108-1226
Stonesifer Patricia Q director PO BOX 81226 SEATTLE WA 98108-1226
Rubinstein Jonathan director APPLE COMPUTER INC 1 INFINITE LOOP CUPERTINO CA 95014
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Weeks Wendell P director ONE RIVERFRONT PLZ CORNING NY 14831
Blackburn Jeffrey M officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108-1226
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202

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