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Zoom Video Communications 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

Zoom Video Communications 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 Zoom Video Communications's Piotroski F-Score or its related term are showing as below:

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

6
7

During the past 5 years, the highest Piotroski F-Score of Zoom Video Communications was 7. The lowest was 6. And the median was 7.


Zoom Video Communications Piotroski F-Score Historical Data

The historical data trend for Zoom Video Communications'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.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21
Piotroski F-Score
N/A N/A N/A 6.00 7.00

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 N/A N/A 7.00 7.00 7.00

Competitive Comparison

For the Software - Application subindustry, Zoom Video Communications'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.

   

Zoom Video Communications Piotroski F-Score Distribution

For the Software industry and Technology sector, Zoom Video Communications's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Zoom Video Communications'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 (Jul21) TTM:Last Year (Jul20) TTM:
Net Income was 198.642 + 260.61 + 227.531 + 317.084 = $1,004 Mil.
Cash Flow from Operations was 411.47 + 399.396 + 533.302 + 468.012 = $1,812 Mil.
Revenue was 777.196 + 882.485 + 956.237 + 1021.495 = $3,637 Mil.
Gross Profit was 518.469 + 615.201 + 691.243 + 760.239 = $2,585 Mil.
Average Total Assets from the begining of this year (Jul20)
to the end of this year (Jul21) was
(2624.941 + 3050.311 + 5297.993 + 5888.611 + 6508.593) / 5 = $4674.0898 Mil.
Total Assets at the begining of this year (Jul20) was $2,625 Mil.
Long-Term Debt & Capital Lease Obligation was $83 Mil.
Total Current Assets was $5,835 Mil.
Total Current Liabilities was $1,686 Mil.
Net Income was 2.211 + 15.339 + 27.075 + 185.989 = $231 Mil.

Revenue was 166.593 + 188.251 + 328.167 + 663.52 = $1,347 Mil.
Gross Profit was 135.748 + 155.704 + 224.46 + 471.249 = $987 Mil.
Average Total Assets from the begining of last year (Jul19)
to the end of last year (Jul20) was
(1069.923 + 1188.057 + 1289.845 + 2067.709 + 2624.941) / 5 = $1648.095 Mil.
Total Assets at the begining of last year (Jul19) was $1,070 Mil.
Long-Term Debt & Capital Lease Obligation was $63 Mil.
Total Current Assets was $2,232 Mil.
Total Current Liabilities was $1,287 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.

Zoom Video Communications's current Net Income (TTM) was 1,004. ==> 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.

Zoom Video Communications's current Cash Flow from Operations (TTM) was 1,812. ==> 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 (Jul20)
=1003.867/2624.941
=0.38243412

ROA (Last Year)=Net Income/Total Assets (Jul19)
=230.614/1069.923
=0.21554261

Zoom Video Communications's return on assets of this year was 0.38243412. Zoom Video Communications's return on assets of last year was 0.21554261. ==> 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.

Zoom Video Communications's current Net Income (TTM) was 1,004. Zoom Video Communications's current Cash Flow from Operations (TTM) was 1,812. ==> 1,812 > 1,004 ==> 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: Jul21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul20 to Jul21
=83.009/4674.0898
=0.01775939

Gearing (Last Year: Jul20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul19 to Jul20
=63.105/1648.095
=0.03828966

Zoom Video Communications's gearing of this year was 0.01775939. Zoom Video Communications's gearing of last year was 0.03828966. ==> 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: Jul21)=Total Current Assets/Total Current Liabilities
=5835.079/1686.373
=3.46013545

Current Ratio (Last Year: Jul20)=Total Current Assets/Total Current Liabilities
=2232.102/1287.326
=1.73390579

Zoom Video Communications's current ratio of this year was 3.46013545. Zoom Video Communications's current ratio of last year was 1.73390579. ==> 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.

Zoom Video Communications's number of shares in issue this year was 305.861. Zoom Video Communications's number of shares in issue last year was 297.162. ==> 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
=2585.152/3637.413
=0.71071171

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=987.161/1346.531
=0.7331142

Zoom Video Communications's gross margin of this year was 0.71071171. Zoom Video Communications's gross margin of last year was 0.7331142. ==> 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

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jul20)
=3637.413/2624.941
=1.38571229

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul19)
=1346.531/1069.923
=1.25853075

Zoom Video Communications's asset turnover of this year was 1.38571229. Zoom Video Communications's asset turnover of last year was 1.25853075. ==> 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+1+1+1+1+0+0+1
=7

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

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

Zoom Video Communications  (NAS:ZM) 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.


Zoom Video Communications Piotroski F-Score Related Terms

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


Zoom Video Communications Business Description

Zoom Video Communications logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Bawa Aparna officer: Chief Operating Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Pelosi Janine officer: Chief Marketing Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Hammonds Kimberly director 100 EAST DAVIE STREET RALEIGH NC 27601
Crehan Shane officer: Chief Accounting Officer C/O EVENTBRITE, INC. 155 5TH STREET, 7TH FLOOR SAN FRANCISCO CA 94103
Yuan Eric S. director, 10 percent owner, officer: Chief Executive Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Mcmaster Herbert Raymond director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Steckelberg Kelly officer: Chief Financial Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Gassner Peter P director C/O VEEVA SYSTEMS INC. 4280 HACIENDA DRIVE PLEASANTON CA 94588
Chadwick Jonathan director 3401 HILLVIEW AVENUE PALO ALTO CA 94304
Azus Ryan officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Swanson Bart director C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Benhorin Roy officer: Chief Accounting Officer C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Sankarlingam Velchamy officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC. 55 ALMADEN BOULEVARD, 6TH FLOOR SAN JOSE CA 95113
Subotovsky Santiago director C/O EMERGENCE CAPITAL PARTNERS 160 BOVENT ROAD SUITE 300 SAN MATEO CA 94402
Emergence Equity Partners Iii, L.p. 10 percent owner 160 BOVET ROAD, SUITE 300 SAN MATEO CA 94402

Zoom Video Communications Headlines

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