GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Narayani National Finance Ltd (XNEP:NNFC) » Definitions » Piotroski F-Score

Narayani National Finance (XNEP:NNFC) Piotroski F-Score : 0 (As of May. 25, 2024)


View and export this data going back to . Start your Free Trial

What is Narayani National Finance 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

Narayani National Finance 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 Narayani National Finance's Piotroski F-Score or its related term are showing as below:


Narayani National Finance Piotroski F-Score Historical Data

The historical data trend for Narayani National Finance'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.

Narayani National Finance Piotroski F-Score Chart

Narayani National Finance Annual Data
Trend Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15
Piotroski F-Score
Get a 7-Day Free Trial - - - - 4.00

Narayani National Finance Quarterly Data
Jul09 Jul10 Jul11 Jul12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16
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 - 4.00 4.00 - 3.00

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 (Jul15) TTM:Last Year (Jul14) TTM:
Net Income was NPR183.6 Mil.
Cash Flow from Operations was NPR254.7 Mil.
Revenue was NPR373.2 Mil.
Average Total Assets from the begining of this year (Jul14)
to the end of this year (Jul15) was (6153.64 + 7399.846) / 2 = NPR6776.743 Mil.
Total Assets at the begining of this year (Jul14) was NPR6,153.6 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0.0 Mil.
Total Assets was NPR7,399.8 Mil.
Total Liabilities was NPR6,328.3 Mil.
Net Income was NPR181.9 Mil.

Revenue was NPR309.6 Mil.
Average Total Assets from the begining of last year (Jul13)
to the end of last year (Jul14) was (4721.705 + 6153.64) / 2 = NPR5437.6725 Mil.
Total Assets at the begining of last year (Jul13) was NPR4,721.7 Mil.
Long-Term Debt & Capital Lease Obligation was NPR0.0 Mil.
Total Assets was NPR6,153.6 Mil.
Total Liabilities was NPR5,206.4 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.

Narayani National Finance's current Net Income (TTM) was 183.6. ==> 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.

Narayani National Finance's current Cash Flow from Operations (TTM) was 254.7. ==> 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 (Jul14)
=183.574/6153.64
=0.02983177

ROA (Last Year)=Net Income/Total Assets (Jul13)
=181.944/4721.705
=0.03853354

Narayani National Finance's return on assets of this year was 0.02983177. Narayani National Finance's return on assets of last year was 0.03853354. ==> 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.

Narayani National Finance's current Net Income (TTM) was 183.6. Narayani National Finance's current Cash Flow from Operations (TTM) was 254.7. ==> 254.7 > 183.6 ==> 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: Jul15)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul14 to Jul15
=0/6776.743
=0

Gearing (Last Year: Jul14)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul13 to Jul14
=0/5437.6725
=0

Narayani National Finance's gearing of this year was 0. Narayani National Finance's gearing of last year was 0. ==> 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

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jul15)=Total Assets/Total Liabilities
=7399.846/6328.289
=1.16932808

Current Ratio (Last Year: Jul14)=Total Assets/Total Liabilities
=6153.64/5206.441
=1.18192831

Narayani National Finance's current ratio of this year was 1.16932808. Narayani National Finance's current ratio of last year was 1.18192831. ==> 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.

Narayani National Finance's number of shares in issue this year was 8.023. Narayani National Finance's number of shares in issue last year was 7.64. ==> 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.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=183.574/373.172
=0.49192865

Net Margin (Last Year: TTM)=Net Income/Revenue
=181.944/309.553
=0.58776365

Narayani National Finance's net margin of this year was 0.49192865. Narayani National Finance's net margin of last year was 0.58776365. ==> Last year's net 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 (Jul14)
=373.172/6153.64
=0.06064248

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul13)
=309.553/4721.705
=0.06555958

Narayani National Finance's asset turnover of this year was 0.06064248. Narayani National Finance's asset turnover of last year was 0.06555958. ==> 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
=1+1+0+1+1+0+0+0+0
=4

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

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

Narayani National Finance  (XNEP:NNFC) 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.


Narayani National Finance Piotroski F-Score Related Terms

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


Narayani National Finance (XNEP:NNFC) Business Description

Traded in Other Exchanges
N/A
Address
Kalikasthan, Kathmandu, NPL
Narayani National Finance Ltd provides banking products and services. It offers products and services including deposits, loans, Internet banking, and remittance to individuals and corporates.

Narayani National Finance (XNEP:NNFC) Headlines

No Headlines