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Moody's 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

Moody's 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 Moody's's Piotroski F-Score or its related term are showing as below:

MCO' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Moody's was 9. The lowest was 4. And the median was 6.


Moody's Piotroski F-Score Historical Data

The historical data trend for Moody's'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.

Moody's 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 4.00 7.00 5.00 9.00 6.00

Moody's 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 8.00 6.00 6.00 4.00 4.00

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Moody's'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.

   

Moody's Piotroski F-Score Distribution

For the Capital Markets industry and Financial Services sector, Moody's's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Moody's'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 474 + 427 + 498 + 327 = $1,726 Mil.
Cash Flow from Operations was 436 + 299 + 470 + 291 = $1,496 Mil.
Revenue was 1526 + 1539 + 1522 + 1381 = $5,968 Mil.
Gross Profit was 1132 + 1054 + 1105 + 988 = $4,279 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(12552 + 14414 + 14680 + 14739 + 14315) / 5 = $14140 Mil.
Total Assets at the begining of this year (Jun21) was $12,552 Mil.
Long-Term Debt & Capital Lease Obligation was $7,579 Mil.
Total Current Assets was $3,820 Mil.
Total Current Liabilities was $2,755 Mil.
Net Income was 467 + 314 + 736 + 577 = $2,094 Mil.

Revenue was 1356 + 1290 + 1600 + 1553 = $5,799 Mil.
Gross Profit was 992 + 881 + 1207 + 1188 = $4,268 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(11298 + 11672 + 12409 + 12500 + 12552) / 5 = $12086.2 Mil.
Total Assets at the begining of last year (Jun20) was $11,298 Mil.
Long-Term Debt & Capital Lease Obligation was $6,741 Mil.
Total Current Assets was $4,734 Mil.
Total Current Liabilities was $2,050 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.

Moody's's current Net Income (TTM) was 1,726. ==> 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.

Moody's's current Cash Flow from Operations (TTM) was 1,496. ==> 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)
=1726/12552
=0.13750797

ROA (Last Year)=Net Income/Total Assets (Jun20)
=2094/11298
=0.18534254

Moody's's return on assets of this year was 0.13750797. Moody's's return on assets of last year was 0.18534254. ==> 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.

Moody's's current Net Income (TTM) was 1,726. Moody's's current Cash Flow from Operations (TTM) was 1,496. ==> 1,496 <= 1,726 ==> CFROA <= ROA ==> Score 0.

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
=7579/14140
=0.53599717

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=6741/12086.2
=0.55774354

Moody's's gearing of this year was 0.53599717. Moody's's gearing of last year was 0.55774354. ==> 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
=3820/2755
=1.38656987

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=4734/2050
=2.30926829

Moody's's current ratio of this year was 1.38656987. Moody's's current ratio of last year was 2.30926829. ==> 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.

Moody's's number of shares in issue this year was 184.9. Moody's's number of shares in issue last year was 187.9. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=4279/5968
=0.71699062

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4268/5799
=0.73598896

Moody's's gross margin of this year was 0.71699062. Moody's's gross margin of last year was 0.73598896. ==> 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 (Jun21)
=5968/12552
=0.47546208

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=5799/11298
=0.51327669

Moody's's asset turnover of this year was 0.47546208. Moody's's asset turnover of last year was 0.51327669. ==> Last year's asset turnover is higher ==> Score 0.

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+0+1+0+1+0+0
=4

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

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

Moody's  (NYSE:MCO) 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.


Moody's Piotroski F-Score Related Terms

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


Moody's Business Description

Moody's logo
Address
7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007
Moody's (along with S&P Ratings) is a leading provider of credit ratings on fixed income securities. Moody's ratings segment, known as Moody's Investors Service or MIS, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. Moody's other segment is Moody's Analytics and consists of Research, Data, and Analytics or RD&A and Enterprise Risk Solutions or ERS. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know your customer (KYC) tools, commercial real estate data and analytical tools, and training services. ERS includes risk management software solutions to financial institutions.
Executives
Serafin Zig director 333 WEST RIVER PARK DRIVE PROVO UT 84604
Howell Lloyd Jr director 8283 GREENSBORO DRIVE MCLEAN VA 22102
Tulenko Stephen T officer: President, Moody's Analytics 7 WORLD TRADE CENTER 250 GREENWICH ST NEW YORK NY 10007
West Michael L officer: President, Moody's Investors 7 WORLD TRADE CENTER 250 GREENWICH ST NEW YORK NY 10007
Esperdy Therese director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Sullivan Caroline officer: SVP-Corporate Controller 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Kaye Mark officer: SVP & Chief Financial Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Hare Jeffrey R officer: Acting Principal Fin Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Hogan David A officer: Acting Principal Acctg Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Zalm Gerrit director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Forlenza Vincent A director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Hughes Melanie officer: SVP & Chief HR Officer 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Crimmins Michael S officer: SVP-Corporate Controller 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Van Saun Bruce director CITIZENS FINANCIAL GROUP, INC. 600 WASHINGTON BLVD STAMFORD CT 06901
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007

Moody's Headlines

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