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Zoom Video Communications Piotroski F-Score

: N/A (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

Zoom Video Communications has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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

During the past 4 years, the highest Piotroski F-Score of Zoom Video Communications was 9999. The lowest was 6. And the median was 6.


Zoom Video Communications Piotroski F-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

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

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
Piotroski F-Score 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 6.00 N/A N/A

Competitive Comparison
* 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.


Zoom Video Communications Piotroski F-Score Distribution

* The bar in red indicates where Zoom Video Communications's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul20) TTM:Last Year (Jul19) TTM:
Net Income was 2.211 + 15.339 + 27.075 + 185.989 = $231 Mil.
Cash Flow from Operations was 61.93 + 36.554 + 258.965 + 401.346 = $759 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 this year (Jul19)
to the end of this year (Jul20) was
(1069.923 + 1188.057 + 1289.845 + 2067.709 + 2624.941) / 5 = $1648.095 Mil.
Total Assets at the begining of this 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.
Net Income was -0.598 + 5.697 + 2.214 + 5.541 = $13 Mil.

Revenue was 90.121 + 105.8 + 121.988 + 145.826 = $464 Mil.
Gross Profit was 73.278 + 86.275 + 97.884 + 117.926 = $375 Mil.
Average Total Assets from the begining of last year (Jul18)
to the end of last year (Jul19) was
(0 + 0 + 354.565 + 999.052 + 1069.923) / 5 = $807.84666667 Mil.
Total Assets at the begining of last year (Jul18) was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $48 Mil.
Total Current Assets was $916 Mil.
Total Current Liabilities was $229 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 231. ==> 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 759. ==> 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 (Jul19)
=230.614/1069.923
=0.21554261

ROA (Last Year)=Net Income/Total Assets (Jul18)
=12.854/0
=

Zoom Video Communications's return on assets of this year was 0.21554261. Zoom Video Communications's return on assets of last year was . ==> 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 231. Zoom Video Communications's current Cash Flow from Operations (TTM) was 759. ==> 759 > 231 ==> 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: Jul20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul19 to Jul20
=63.105/1648.095
=0.03828966

Gearing (Last Year: Jul19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul18 to Jul19
=48.104/807.84666667
=0.05954595

Zoom Video Communications's gearing of this year was 0.03828966. Zoom Video Communications's gearing of last year was 0.05954595. ==> 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: Jul20)=Total Current Assets/Total Current Liabilities
=2232.102/1287.326
=1.73390579

Current Ratio (Last Year: Jul19)=Total Current Assets/Total Current Liabilities
=916.059/228.996
=4.00032752

Zoom Video Communications's current ratio of this year was 1.73390579. Zoom Video Communications's current ratio of last year was 4.00032752. ==> 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.

Zoom Video Communications's number of shares in issue this year was 297.162. Zoom Video Communications's number of shares in issue last year was 292.186. ==> 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
=987.161/1346.531
=0.7331142

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=375.363/463.735
=0.80943427

Zoom Video Communications's gross margin of this year was 0.7331142. Zoom Video Communications's gross margin of last year was 0.80943427. ==> 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 (Jul19)
=1346.531/1069.923
=1.25853075

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul18)
=463.735/0
=

Zoom Video Communications's asset turnover of this year was 1.25853075. Zoom Video Communications's asset turnover of last year was . ==> 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+0+0+0+1
=6

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

Zoom Video Communications has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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


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