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General Electric Co Piotroski F-Score

: 4 (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

General Electric Co has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for General Electric Co's Piotroski F-Score or its related term are showing as below:

NYSE:GE' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 4

1
9

During the past 13 years, the highest Piotroski F-Score of General Electric Co was 9. The lowest was 1. And the median was 5.


General Electric Co Piotroski F-Score Historical Data

The historical data trend for General Electric Co'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.

General Electric Co 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 5.00 4.00 5.00 6.00 4.00

General Electric Co 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 6.00 4.00 4.00 5.00 4.00

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co'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.

   

General Electric Co Piotroski F-Score Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where General Electric Co'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 2636 + -2802 + -1131 + 1257 = $-40 Mil.
Cash Flow from Operations was 3657 + -1959 + 518 + 2341 = $4,557 Mil.
Revenue was 24796 + 17119 + 18280 + 18429 = $78,624 Mil.
Gross Profit was 6476 + 4581 + 4662 + 5027 = $20,746 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(254315 + 253452 + 245164 + 237559 + 237133) / 5 = $245524.6 Mil.
Total Assets at the begining of this year (Sep20) was $254,315 Mil.
Long-Term Debt & Capital Lease Obligation was $57,429 Mil.
Total Current Assets was $103,588 Mil.
Total Current Liabilities was $57,677 Mil.
Net Income was 728 + 6199 + -1987 + -1144 = $3,796 Mil.

Revenue was 26238 + 19490 + 16805 + 18529 = $81,062 Mil.
Gross Profit was 10275 + 5063 + 3172 + 4488 = $22,998 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(263009 + 265177 + 262021 + 256487 + 254315) / 5 = $260201.8 Mil.
Total Assets at the begining of last year (Sep19) was $263,009 Mil.
Long-Term Debt & Capital Lease Obligation was $73,488 Mil.
Total Current Assets was $128,680 Mil.
Total Current Liabilities was $55,684 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.

General Electric Co's current Net Income (TTM) was -40. ==> Negative ==> Score 0.

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.

General Electric Co's current Cash Flow from Operations (TTM) was 4,557. ==> 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)
=-40/254315
=-0.00015729

ROA (Last Year)=Net Income/Total Assets (Sep19)
=3796/263009
=0.01443297

General Electric Co's return on assets of this year was -0.00015729. General Electric Co's return on assets of last year was 0.01443297. ==> 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.

General Electric Co's current Net Income (TTM) was -40. General Electric Co's current Cash Flow from Operations (TTM) was 4,557. ==> 4,557 > -40 ==> 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
=57429/245524.6
=0.23390324

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=73488/260201.8
=0.28242695

General Electric Co's gearing of this year was 0.23390324. General Electric Co's gearing of last year was 0.28242695. ==> 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
=103588/57677
=1.79600187

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=128680/55684
=2.31089721

General Electric Co's current ratio of this year was 1.79600187. General Electric Co's current ratio of last year was 2.31089721. ==> 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.

General Electric Co's number of shares in issue this year was 1105. General Electric Co's number of shares in issue last year was 1095. ==> 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
=20746/78624
=0.26386345

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=22998/81062
=0.28370877

General Electric Co's gross margin of this year was 0.26386345. General Electric Co's gross margin of last year was 0.28370877. ==> 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 (Sep20)
=78624/254315
=0.3091599

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=81062/263009
=0.30820999

General Electric Co's asset turnover of this year was 0.3091599. General Electric Co's asset turnover of last year was 0.30820999. ==> 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
=0+1+0+1+1+0+0+0+1
=4

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

General Electric Co has an F-score of 4 indicating the company's financial situation is typical for a stable company.

General Electric Co  (NYSE:GE) 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.


General Electric Co Piotroski F-Score Related Terms

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


General Electric Co Business Description

General Electric Co logo
Industry
Industrials » Industrial Products NAICS : 335312 SIC : 3621
Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel, precision health, and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, onshore and offshore wind turbines, as well as medical diagnostic and mobile equipment. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by former Danaher alum Larry Culp who is leading a multi-year turnaround of the storied conglomerate based on Lean principles.
Executives
Horton Thomas W director 4333 AMON CARTER BLVD. FORTH WORTH TX 76155
Rosput Paula G director 605 HILLSIDE DRIVE EAST SEATTLE WA 98112
Trian Fund Management, L.p. director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Garden Edward P director 280 PARK AVE 41ST FL NEW YORK NY 10017
Lavizzo-mourey Risa J director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Tisch James S director 667 MADISON AVE NEW YORK NY 10021
Bazin Sebastien director 5 NECCO STREET 5 NECCO STREET BOSTON MA 02210
Dsouza Francisco director 500 GLENPOINTE CENTRE W TEANECK NJ 07666
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Lesjak Catherine A director 1501 PAGE MILL RD PALO ALTO CA 94304
Carter Ashton B director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Pecresse Jerome officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210
Murphy Kieran Pius officer: Senior Vice President THE GROVE CENTRE,WHITE LION ROAD LITTLE CHALFONT X0 HP7 9LL
Joyce David Leon officer: Vice Chairman GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Stokes Russell officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210

General Electric Co Headlines

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