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Rio Tinto Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a 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

Rio Tinto has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

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

RIO' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Rio Tinto was 9. The lowest was 3. And the median was 6.


Rio Tinto Piotroski F-Score Historical Data

The historical data trend for Rio Tinto'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.

Rio Tinto 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 8.00 7.00 6.00 9.00 8.00

Rio Tinto Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 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 - 9.00 - 8.00 -

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Rio Tinto'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.

   

Rio Tinto Piotroski F-Score Distribution

For the Metals & Mining industry and Basic Materials sector, Rio Tinto's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Rio Tinto'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 (Dec21) TTM:Last Year (Dec20) TTM:
Net Income was $21,094 Mil.
Cash Flow from Operations was $25,345 Mil.
Revenue was $63,495 Mil.
Gross Profit was $44,934 Mil.
Average Total Assets from the begining of this year (Dec20)
to the end of this year (Dec21) was (97390 + 102896) / 2 = $100143 Mil.
Total Assets at the begining of this year (Dec20) was $97,390 Mil.
Long-Term Debt & Capital Lease Obligation was $12,395 Mil.
Total Current Assets was $24,432 Mil.
Total Current Liabilities was $12,627 Mil.
Net Income was $9,769 Mil.

Revenue was $44,611 Mil.
Gross Profit was $29,126 Mil.
Average Total Assets from the begining of last year (Dec19)
to the end of last year (Dec20) was (87802 + 97390) / 2 = $92596 Mil.
Total Assets at the begining of last year (Dec19) was $87,802 Mil.
Long-Term Debt & Capital Lease Obligation was $13,247 Mil.
Total Current Assets was $20,855 Mil.
Total Current Liabilities was $11,607 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.

Rio Tinto's current Net Income (TTM) was 21,094. ==> 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.

Rio Tinto's current Cash Flow from Operations (TTM) was 25,345. ==> 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 (Dec20)
=21094/97390
=0.21659308

ROA (Last Year)=Net Income/Total Assets (Dec19)
=9769/87802
=0.1112617

Rio Tinto's return on assets of this year was 0.21659308. Rio Tinto's return on assets of last year was 0.1112617. ==> 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.

Rio Tinto's current Net Income (TTM) was 21,094. Rio Tinto's current Cash Flow from Operations (TTM) was 25,345. ==> 25,345 > 21,094 ==> 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: Dec21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec20 to Dec21
=12395/100143
=0.123773

Gearing (Last Year: Dec20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec19 to Dec20
=13247/92596
=0.14306234

Rio Tinto's gearing of this year was 0.123773. Rio Tinto's gearing of last year was 0.14306234. ==> 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: Dec21)=Total Current Assets/Total Current Liabilities
=24432/12627
=1.9349014

Current Ratio (Last Year: Dec20)=Total Current Assets/Total Current Liabilities
=20855/11607
=1.79676058

Rio Tinto's current ratio of this year was 1.9349014. Rio Tinto's current ratio of last year was 1.79676058. ==> 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.

Rio Tinto's number of shares in issue this year was 1628.9. Rio Tinto's number of shares in issue last year was 1628.6. ==> 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
=44934/63495
=0.70767777

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=29126/44611
=0.6528883

Rio Tinto's gross margin of this year was 0.70767777. Rio Tinto's gross margin of last year was 0.6528883. ==> 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 (Dec20)
=63495/97390
=0.65196632

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec19)
=44611/87802
=0.50808638

Rio Tinto's asset turnover of this year was 0.65196632. Rio Tinto's asset turnover of last year was 0.50808638. ==> 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+1+1
=8

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

Rio Tinto has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Rio Tinto  (NYSE:RIO) 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.


Rio Tinto Piotroski F-Score Related Terms

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Rio Tinto Business Description

Rio Tinto logo
Address
6 St James’s Square, London, GBR, SW1Y 4AD
Rio Tinto searches for and extracts a variety of minerals worldwide, with the heaviest concentrations in North America and Australia. Iron ore is the dominant commodity, with significantly lesser contributions from aluminium, copper, diamonds, gold, and industrial minerals. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity. Shareholders in each company have equivalent economic and voting rights.

Rio Tinto Headlines

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