Telecom Argentina Piotroski F-Score

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.

*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.

Telecom Argentina's current Net Income (TTM) was 202. ==> 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.

Telecom Argentina's current Cash Flow from Operations (TTM) was 1,141. ==> 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.

Telecom Argentina's return on assets of this year was 0.02112113. Telecom Argentina's return on assets of last year was 0.03620973. ==> 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.

Telecom Argentina's current Net Income (TTM) was 202. Telecom Argentina's current Cash Flow from Operations (TTM) was 1,141. ==> 1,141 > 202 ==> 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.

Telecom Argentina's gearing of this year was 0.19630457. Telecom Argentina's gearing of last year was 0.20285203. ==> 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

Telecom Argentina's current ratio of this year was 0.68658959. Telecom Argentina's current ratio of last year was 0.849312. ==> 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.

Telecom Argentina's number of shares in issue this year was 429.634. Telecom Argentina's number of shares in issue last year was 430.697. ==> 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.

Telecom Argentina's gross margin of this year was 0.55815296. Telecom Argentina's gross margin of last year was 0.54808522. ==> 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

Telecom Argentina's asset turnover of this year was 0.33224098. Telecom Argentina's asset turnover of last year was 0.97502422. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

Telecom Argentina  (NYSE:TEO) Piotroski F-Score Explanation