* 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.
Diversicare Healthcare Services's current Net Income (TTM) was 2.4.
==> 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.
Diversicare Healthcare Services's current Cash Flow from Operations (TTM) was -5.6.
==> 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.
Diversicare Healthcare Services's return on assets of this year was 0.00556062. Diversicare Healthcare Services's return on assets of last year was 0.00055885.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Diversicare Healthcare Services's gearing of this year was 0.73019857. Diversicare Healthcare Services's gearing of last year was 0.75816383.
==> 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
Diversicare Healthcare Services's current ratio of this year was 0.82502013. Diversicare Healthcare Services's current ratio of last year was 0.84476682.
==> 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.
Diversicare Healthcare Services's number of shares in issue this year was 6.643. Diversicare Healthcare Services's number of shares in issue last year was 6.626.
==> 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.
Diversicare Healthcare Services's gross margin of this year was 0.16604442. Diversicare Healthcare Services's gross margin of last year was 0.19180204.
==> 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
Diversicare Healthcare Services's asset turnover of this year was 1.04806062. Diversicare Healthcare Services's asset turnover of last year was 1.06218551.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Que. 1
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Que. 2
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Que. 4
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Que. 9
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1
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0
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3
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Diversicare Healthcare Services has an F-score of 3. 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.
Diversicare Healthcare Services Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Diversicare Healthcare Services's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Diversicare Healthcare Services (Diversicare Healthcare Services) Business Description
Diversicare Healthcare Services Inc provides post-acute care services to the skilled nursing facility, patients, and residents in ten states, primarily in the Southeast, Midwest, and Southwest United States. The company provides a broad range of post-acute care services to patients and residents including skilled nursing, ancillary health care services and assisted living. In addition to the nursing and social services usually provided in long-term care centers, it also offers a variety of rehabilitative, nutritional, respiratory, and other specialized ancillary services. The group derives revenue from Medicaid, Medicare, Managed Care, and Private Pay and Other sources.
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