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RONA (RONAF) Piotroski F-Score : 0 (As of Apr. 26, 2024)


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What is RONA Piotroski F-Score?

The zones of discrimination were as such:

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

RONA has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

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


RONA Piotroski F-Score Historical Data

The historical data trend for RONA'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.

RONA Piotroski F-Score Chart

RONA Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 8.00 5.00 7.00 6.00

RONA Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
Piotroski F-Score Get a 7-Day Free Trial 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 7.00 7.00 6.00 6.00 7.00

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 (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 42.224 + 6.396 + 12.121 + -10.724 = $50 Mil.
Cash Flow from Operations was 106.353 + 51.366 + -8.698 + -30.48 = $119 Mil.
Revenue was 1021.81 + 871.569 + 754.608 + 619.398 = $3,267 Mil.
Gross Profit was 264.725 + 233.07 + 216.893 + 183.737 = $898 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(1995.995 + 2038.258 + 1874.9 + 1811.232 + 1998.845) / 5 = $1943.846 Mil.
Total Assets at the begining of this year (Mar15) was $1,996 Mil.
Long-Term Debt & Capital Lease Obligation was $270 Mil.
Total Current Assets was $1,057 Mil.
Total Current Liabilities was $518 Mil.
Net Income was 40.934 + 36.637 + 6.798 + -7.44 = $77 Mil.

Revenue was 1102.071 + 1060.086 + 842.229 + 617.19 = $3,622 Mil.
Gross Profit was 287.664 + 267.327 + 227.508 + 166.315 = $949 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(2322.622 + 2327.931 + 2164.664 + 2025.762 + 1995.995) / 5 = $2167.3948 Mil.
Total Assets at the begining of last year (Mar14) was $2,323 Mil.
Long-Term Debt & Capital Lease Obligation was $312 Mil.
Total Current Assets was $1,050 Mil.
Total Current Liabilities was $437 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.

RONA's current Net Income (TTM) was 50. ==> 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.

RONA's current Cash Flow from Operations (TTM) was 119. ==> 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 (Mar15)
=50.017/1995.995
=0.02505868

ROA (Last Year)=Net Income/Total Assets (Mar14)
=76.929/2322.622
=0.03312162

RONA's return on assets of this year was 0.02505868. RONA's return on assets of last year was 0.03312162. ==> 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.

RONA's current Net Income (TTM) was 50. RONA's current Cash Flow from Operations (TTM) was 119. ==> 119 > 50 ==> 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: Mar16)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar15 to Mar16
=269.573/1943.846
=0.13868022

Gearing (Last Year: Mar15)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar14 to Mar15
=312.313/2167.3948
=0.14409604

RONA's gearing of this year was 0.13868022. RONA's gearing of last year was 0.14409604. ==> 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: Mar16)=Total Current Assets/Total Current Liabilities
=1056.737/518.114
=2.03958395

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=1049.639/437.097
=2.40138688

RONA's current ratio of this year was 2.03958395. RONA's current ratio of last year was 2.40138688. ==> 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.

RONA's number of shares in issue this year was 106.921. RONA's number of shares in issue last year was 110.16. ==> 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
=898.425/3267.385
=0.2749676

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=948.814/3621.576
=0.26198926

RONA's gross margin of this year was 0.2749676. RONA's gross margin of last year was 0.26198926. ==> 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 (Mar15)
=3267.385/1995.995
=1.63697053

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar14)
=3621.576/2322.622
=1.5592619

RONA's asset turnover of this year was 1.63697053. RONA's asset turnover of last year was 1.5592619. ==> 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+0+1+1+0+1+1+1
=7

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

RONA has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

RONA  (OTCPK:RONAF) 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.


RONA Piotroski F-Score Related Terms

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RONA (RONAF) Business Description

Traded in Other Exchanges
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Address
Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

RONA (RONAF) Headlines

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