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Alphabet(Google) Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

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

Alphabet(Google) 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 Alphabet(Google)'s Piotroski F-Score or its related term are showing as below:

GOOG' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Alphabet(Google) was 8. The lowest was 4. And the median was 6.


Alphabet(Google) Piotroski F-Score Historical Data

The historical data trend for Alphabet(Google)'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.

Alphabet(Google) Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 5.00 4.00 8.00

Alphabet(Google) Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 7.00 8.00 8.00 8.00 6.00

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'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.

   

Alphabet(Google) Piotroski F-Score Distribution

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 18936 + 20642 + 16436 + 16002 = $72,016 Mil.
Cash Flow from Operations was 25539 + 24934 + 25106 + 19422 = $95,001 Mil.
Revenue was 65118 + 75325 + 68011 + 69685 = $278,139 Mil.
Gross Profit was 37497 + 42337 + 38412 + 39581 = $157,827 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(335387 + 347403 + 359268 + 357096 + 355185) / 5 = $350867.8 Mil.
Total Assets at the begining of this year (Jun21) was $335,387 Mil.
Long-Term Debt & Capital Lease Obligation was $26,431 Mil.
Total Current Assets was $172,371 Mil.
Total Current Liabilities was $61,354 Mil.
Net Income was 11247 + 15227 + 17930 + 18525 = $62,929 Mil.

Revenue was 46173 + 56898 + 55314 + 61880 = $220,265 Mil.
Gross Profit was 25056 + 30818 + 31211 + 35653 = $122,738 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(278492 + 299243 + 319616 + 327095 + 335387) / 5 = $311966.6 Mil.
Total Assets at the begining of last year (Jun20) was $278,492 Mil.
Long-Term Debt & Capital Lease Obligation was $25,947 Mil.
Total Current Assets was $175,697 Mil.
Total Current Liabilities was $55,741 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.

Alphabet(Google)'s current Net Income (TTM) was 72,016. ==> 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.

Alphabet(Google)'s current Cash Flow from Operations (TTM) was 95,001. ==> 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 (Jun21)
=72016/335387
=0.21472508

ROA (Last Year)=Net Income/Total Assets (Jun20)
=62929/278492
=0.2259634

Alphabet(Google)'s return on assets of this year was 0.21472508. Alphabet(Google)'s return on assets of last year was 0.2259634. ==> Last year is higher ==> Score 0.

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.

Alphabet(Google)'s current Net Income (TTM) was 72,016. Alphabet(Google)'s current Cash Flow from Operations (TTM) was 95,001. ==> 95,001 > 72,016 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=26431/350867.8
=0.07533037

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=25947/311966.6
=0.08317237

Alphabet(Google)'s gearing of this year was 0.07533037. Alphabet(Google)'s gearing of last year was 0.08317237. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=172371/61354
=2.80945008

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=175697/55741
=3.15202454

Alphabet(Google)'s current ratio of this year was 2.80945008. Alphabet(Google)'s current ratio of last year was 3.15202454. ==> 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.

Alphabet(Google)'s number of shares in issue this year was 14126. Alphabet(Google)'s number of shares in issue last year was 13592. ==> 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
=157827/278139
=0.5674393

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=122738/220265
=0.55722879

Alphabet(Google)'s gross margin of this year was 0.5674393. Alphabet(Google)'s gross margin of last year was 0.55722879. ==> 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 (Jun21)
=278139/335387
=0.82930764

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=220265/278492
=0.79092039

Alphabet(Google)'s asset turnover of this year was 0.82930764. Alphabet(Google)'s asset turnover of last year was 0.79092039. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+1+1
=6

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

Alphabet(Google) has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Alphabet(Google)  (NAS:GOOG) 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.


Alphabet(Google) Piotroski F-Score Related Terms

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


Alphabet(Google) Business Description

Alphabet(Google) logo
Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet Inc is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
Executives
Hennessy John L director
Mather Ann director
Porat Ruth officer: SVP, CFO C/O GOOGLE INC. 1600 AMPHITHEATRE PRKW MOUNTAIN VIEW CA 94043
Pichai Sundar director, officer: Chief Executive Officer GOOGLE INC. 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Doerr L John director C/O KLEINER PERKINS CAUFIELD & BYERS 2750 SAND HILL ROAD MENLO PARK CA 94025
Arnold Frances director 5200 ILLUMINA WAY SAN DIEGO CA 92122
Ferguson Roger W. Jr. director CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING NY 14831
Shriram Kavitark Ram director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Mulally Alan R director P.O. BOX 995 MERCER ISLAND WA 98040
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Brin Sergey director, 10 percent owner 555 BRYANT STREET, #367 PALO ALTO CA 94031
Drummond David C officer: SVP, Corporate Development 1600 AMIPHITHEATRE PARKWAY BUILDING 41 MOUNTAIN VIEW CA 94043
Schmidt Eric E director 1010 ALMA STREET MENLO PARK CA 94025
Greene Diane B director C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Campbell James Grier officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043

Alphabet(Google) Headlines

Other Sources

Alphabet: An Influential, Undervalued Titan

By tipranks.com 2022-03-15

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