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Block 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

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

SQ' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 4

During the past 10 years, the highest Piotroski F-Score of Block was 7. The lowest was 3. And the median was 5.


Block Piotroski F-Score Historical Data

The historical data trend for Block'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.

Block 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 5.00 5.00 5.00 3.00 6.00

Block 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 5.00 5.00 6.00 5.00 4.00

Competitive Comparison

For the Software - Infrastructure subindustry, Block'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.

   

Block Piotroski F-Score Distribution

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

* The bar in red indicates where Block'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 0.084 + -76.829 + -204.199 + -208.014 = $-489 Mil.
Cash Flow from Operations was 426.622 + 175.054 + 229.423 + -114.626 = $716 Mil.
Revenue was 3844.727 + 4078.534 + 3960.645 + 4404.499 = $16,288 Mil.
Gross Profit was 1133.215 + 1182.043 + 1294.96 + 1469.648 = $5,080 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(13815.688 + 13909.426 + 13925.764 + 29127.467 + 28885.16) / 5 = $19932.701 Mil.
Total Assets at the begining of this year (Jun21) was $13,816 Mil.
Long-Term Debt & Capital Lease Obligation was $4,437 Mil.
Total Current Assets was $12,526 Mil.
Total Current Liabilities was $6,961 Mil.
Net Income was 36.515 + 293.959 + 39.008 + 204.021 = $574 Mil.

Revenue was 3033.874 + 3158.97 + 5057.27 + 4680.672 = $15,931 Mil.
Gross Profit was 794.455 + 803.69 + 963.501 + 1141.064 = $3,703 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(7812.272 + 8114.276 + 9869.55 + 11348.72 + 13815.688) / 5 = $10192.1012 Mil.
Total Assets at the begining of last year (Jun20) was $7,812 Mil.
Long-Term Debt & Capital Lease Obligation was $5,246 Mil.
Total Current Assets was $11,000 Mil.
Total Current Liabilities was $5,647 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.

Block's current Net Income (TTM) was -489. ==> 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.

Block's current Cash Flow from Operations (TTM) was 716. ==> 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)
=-488.958/13815.688
=-0.03539151

ROA (Last Year)=Net Income/Total Assets (Jun20)
=573.503/7812.272
=0.07341053

Block's return on assets of this year was -0.03539151. Block's return on assets of last year was 0.07341053. ==> 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.

Block's current Net Income (TTM) was -489. Block's current Cash Flow from Operations (TTM) was 716. ==> 716 > -489 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=4437.432/19932.701
=0.22262071

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=5245.848/10192.1012
=0.5146974

Block's gearing of this year was 0.22262071. Block's gearing of last year was 0.5146974. ==> 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
=12526.335/6960.986
=1.79950585

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=11000.235/5646.77
=1.94805792

Block's current ratio of this year was 1.79950585. Block's current ratio of last year was 1.94805792. ==> 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.

Block's number of shares in issue this year was 581.35. Block's number of shares in issue last year was 522.578. ==> 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
=5079.866/16288.405
=0.31187007

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3702.71/15930.786
=0.23242482

Block's gross margin of this year was 0.31187007. Block's gross margin of last year was 0.23242482. ==> 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 (Jun21)
=16288.405/13815.688
=1.17897893

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=15930.786/7812.272
=2.03920012

Block's asset turnover of this year was 1.17897893. Block's asset turnover of last year was 2.03920012. ==> 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
=0+1+0+1+1+0+0+1+0
=4

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

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

Block  (NYSE:SQ) 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.


Block Piotroski F-Score Related Terms

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


Block Business Description

Block logo
Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment acquiring services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. Block has operations in Canada, Japan, Australia, and the United Kingdom; about 5% of revenue is generated outside the U.S.
Executives
Rothstein Sharon director C/O YELP INC. 350 MISSION STREET, 10TH FLOOR SAN FRANCISCO CA 94105
Carter Shawn Corey director C/O S. CARTER ENTERPRISES, LLC 1411 BROADWAY NEW YORK NY 10018
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Grassadonia Brian officer: Cash App Lead 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Meeker Mary G director 2750 SAND HILL ROAD MENLO PARK CA 94025
Brooks Amy director 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Ahuja Amrita officer: Chief Financial Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Murphy Timothy Hugh officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Daswani Mohit officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Whiteley Sivan officer: Gen. Counsel & Corp. Secretary 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Patterson Anna director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Rao Naveen G director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Garutti Randall J director C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Reses Jacqueline D officer: Capital Lead & People Lead C/O SQUARE, INC. 1455 MARKET STREET #600 SAN FRANCISCO CA 94103
Smith Hillary B officer: Gen. Counsel & Corp. Secretary C/O YEXT, INC 61 NINTH AVENUE NEW YORK NY 10011

Block Headlines

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