Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
ACME Communications has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for ACME Communications's Piotroski F-Score or its related term are showing as below:
ACME Communications Piotroski F-Score Historical Data
The historical data trend for ACME Communications'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.
* 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.
*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.
ACME Communications's current Net Income (TTM) was 6.24.
==> 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.
ACME Communications's return on assets of this year was 0.19619796. ACME Communications's return on assets of last year was 0.10970144.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
ACME Communications's gearing of this year was 0.02066545. ACME Communications's gearing of last year was 0.01492815.
==> Last year is lower than this year ==> Score 0.
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
ACME Communications's current ratio of this year was 1.24879227. ACME Communications's current ratio of last year was 1.27252975.
==> 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.
ACME Communications's number of shares in issue this year was 16.047. ACME Communications's number of shares in issue last year was 16.047.
==> 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.
ACME Communications's gross margin of this year was 0.46001797. ACME Communications's gross margin of last year was 0.34939961.
==> 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
ACME Communications's asset turnover of this year was 0.31475255. ACME Communications's asset turnover of last year was 0.25783195.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
ACME Communications has an F-score of 6 indicating the company's financial situation is typical for a stable company.
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.
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.
ACME Communications Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of ACME Communications's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
ACME Communications (ACME Communications) Business Description
ACME Communications, Inc. was incorporated in Delaware in 1999. The Company owns and operates nine broadcast television stations in medium-sized markets across the United States. The eight television stations that comprise its continuing operations are regionally diverse and range in market size. All but one of the Company's stations are affiliates of The WB Television Network. The Company's second station in the Albuquerque-Santa Fe marketplace is a UPN affiliate. The Company's eight stations have only been on the air, or achieving measurable ratings, for 5-7 years. The Company derive revenues primarily from the sale of advertising time to local, regional and national advertisers and from program licensing fees related to The Daily Buzz that have been a fast growing component of its revenue base. Its advertising revenues depend on popular programming that attracts audiences in the demographic groups targeted by advertisers, allowing it to sell advertising time at satisfactory rates. The Company's rates are directly affected by the number of and demographic makeup of its viewing audience, as measured by Nielsen Media Research. The Company's stations are generally ranked fifth in their respective markets in terms of either their share of viewers or their share of the market's broadcast television revenue. In periods of lower advertising demand competition from market leaders, generally the ABC, CBS, NBC and Fox affiliated stations, increases as these stations become more aggressive in their pricing to maintain their revenue share. The Company's operations are subject to regulation by the FCC.
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