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RingCentral Piotroski F-Score

: 3 (As of Today)
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Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

RingCentral has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

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

NYSE:RNG' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 8
Current: 3

2
8

During the past 11 years, the highest Piotroski F-Score of RingCentral was 8. The lowest was 2. And the median was 4.


RingCentral Piotroski F-Score Historical Data

The historical data trend for RingCentral'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.

RingCentral Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 4.00 4.00 3.00

RingCentral Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 2.00 3.00 3.00 4.00 3.00

Competitive Comparison

For the Software - Application subindustry, RingCentral'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.

   

RingCentral Piotroski F-Score Distribution

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

* The bar in red indicates where RingCentral'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 (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was -1.827 + -0.186 + -110.956 + -146.751 = $-260 Mil.
Cash Flow from Operations was -2.484 + 36.955 + 24.516 + 43.029 = $102 Mil.
Revenue was 334.536 + 352.356 + 379.273 + 414.629 = $1,481 Mil.
Gross Profit was 243.324 + 255.375 + 274.35 + 304.18 = $1,077 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(2116.314 + 2184.597 + 2069.712 + 1968.657 + 1965.503) / 5 = $2060.9566 Mil.
Total Assets at the begining of this year (Sep20) was $2,116 Mil.
Long-Term Debt & Capital Lease Obligation was $1,417 Mil.
Total Current Assets was $694 Mil.
Total Current Liabilities was $476 Mil.
Net Income was -25.257 + -60.721 + 0.509 + -20.957 = $-106 Mil.

Revenue was 252.865 + 267.512 + 277.985 + 303.624 = $1,102 Mil.
Gross Profit was 185.992 + 194.068 + 201.348 + 221.31 = $803 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(1059.479 + 1450.747 + 1871.92 + 1964.643 + 2116.314) / 5 = $1692.6206 Mil.
Total Assets at the begining of last year (Sep19) was $1,059 Mil.
Long-Term Debt & Capital Lease Obligation was $1,433 Mil.
Total Current Assets was $993 Mil.
Total Current Liabilities was $369 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.

RingCentral's current Net Income (TTM) was -260. ==> 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.

RingCentral's current Cash Flow from Operations (TTM) was 102. ==> 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 (Sep20)
=-259.72/2116.314
=-0.12272281

ROA (Last Year)=Net Income/Total Assets (Sep19)
=-106.426/1059.479
=-0.10045126

RingCentral's return on assets of this year was -0.12272281. RingCentral's return on assets of last year was -0.10045126. ==> 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.

RingCentral's current Net Income (TTM) was -260. RingCentral's current Cash Flow from Operations (TTM) was 102. ==> 102 > -260 ==> 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: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=1416.582/2060.9566
=0.68734198

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=1432.871/1692.6206
=0.84653997

RingCentral's gearing of this year was 0.68734198. RingCentral's gearing of last year was 0.84653997. ==> 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: Sep21)=Total Current Assets/Total Current Liabilities
=693.597/475.61
=1.45833141

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=992.604/369.213
=2.68843188

RingCentral's current ratio of this year was 1.45833141. RingCentral's current ratio of last year was 2.68843188. ==> 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.

RingCentral's number of shares in issue this year was 91.811. RingCentral's number of shares in issue last year was 89.173. ==> 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
=1077.229/1480.794
=0.72746716

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=802.718/1101.986
=0.72842849

RingCentral's gross margin of this year was 0.72746716. RingCentral's gross margin of last year was 0.72842849. ==> Last year's gross margin is higher ==> Score 0.

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 (Sep20)
=1480.794/2116.314
=0.6997043

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=1101.986/1059.479
=1.04012066

RingCentral's asset turnover of this year was 0.6997043. RingCentral's asset turnover of last year was 1.04012066. ==> 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+0+0
=3

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

RingCentral has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

RingCentral  (NYSE:RNG) 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.


RingCentral Piotroski F-Score Related Terms

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


RingCentral Business Description

RingCentral logo
Industry
Technology » Software NAICS : 541519 SIC : 7379
Traded in Other Exchanges
Address
20 Davis Drive, Belmont, CA, USA, 94002
RingCentral is a unified-communication-as-a-service, or UCaaS, provider. RingCentral's software provides an easy-to-use, integrated communication application that allows for a single user experience across mobile and desktop applications. The software lets businesses communicate and collaborate using voice, video, text, Internet messaging, and conference calls on a single platform. Ninety percent of RingCentral's revenue comes from its RingCentral Office application, which is available in four tiers based on integration needs and the number of employees. The company was founded in 1999 and its headquarters are in Belmont, California.
Executives
Agarwal Vaibhav officer: Chief Accounting Officer 20 DAVIS DRIVE BELMONT CA 94002
Shah Praful officer: Chief Strategy Officer C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Marlow John H officer: SVP, CAO & General Counsel C/O RINGCENTRAL, INC 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Iii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund Ii, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca Fund I, Lp other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Elca, Llc other: Controlled by Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Sandra other: Wife of Reporting Person C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Shmunis Vladimir director, officer: CEO & Chairman C/O RINGCENTRAL, INC. 1400 FASHION ISLAND BLVD, 7TH FLOOR SAN MATEO CA 94404
Williams R Neil director C/O INTUIT INC. 2700 COAST AVENUE MOUNTAIN VIEW CA 94043
Dhruv Mitesh officer: Chief Financial Officer 34601 CASCADES CIRCLE UNION CITY CA 94587
Sullivan Godfrey director SPLUNK INC. 250 BRANNAN STREET SAN FRANCISCO CA 94107
Theis Robert I director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: THEIS ROBERT I a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Eswaran Anand officer: President & COO 20 DAVIS DRIVE BELMONT CA 94002
Goldman Kenneth A director C/O YAHOO! INC. 701 FIRST AVENUE SUNNYVALE CA 94089

RingCentral Headlines

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