Piotroski F-Score is 7, indicates a very healthy situation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Zoom Video Communications 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 Zoom Video Communications's Piotroski F-Score or its related term are showing as below:
ZM'
s Piotroski F-Score Range Over the Past 10 Years
Min: 5 Med: 6 Max: 7
Current: 7
During the past 7 years, the highest Piotroski F-Score of Zoom Video Communications was 7. The lowest was 5. And the median was 6.
Zoom Video Communications Piotroski F-Score Historical Data
The historical data trend for Zoom Video 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.
* Premium members only.
Zoom Video Communications Annual Data
Trend
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Piotroski F-Score
N/A
6.00
7.00
6.00
6.00
Zoom Video Communications Quarterly Data
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Piotroski F-Score
5.00
6.00
6.00
6.00
7.00
Competitive Comparison
For the Software - Application subindustry, Zoom Video Communications'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.
Zoom Video Communications Piotroski F-Score Distribution
For the Software industry and Technology sector, Zoom Video Communications's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Zoom Video Communications's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.
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.
*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.
Zoom Video Communications's current Net Income (TTM) was 142.
==> 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.
Zoom Video Communications's current Cash Flow from Operations (TTM) was 1,261.
==> 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.
Zoom Video Communications's return on assets of this year was 0.01761035. Zoom Video Communications's return on assets of last year was 0.15217298.
==> 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.
Zoom Video Communications's current Net Income (TTM) was 142. Zoom Video Communications's current Cash Flow from Operations (TTM) was 1,261.
==> 1,261 > 142 ==> 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.
Zoom Video Communications's gearing of this year was 0.00749672. Zoom Video Communications's gearing of last year was 0.01025209.
==> 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
Zoom Video Communications's current ratio of this year was 3.98930677. Zoom Video Communications's current ratio of last year was 3.43587885.
==> This year's current ratio is higher. ==> Score 1.
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.
Zoom Video Communications's number of shares in issue this year was 305.933. Zoom Video Communications's number of shares in issue last year was 307.161.
==> 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.
Zoom Video Communications's gross margin of this year was 0.75457251. Zoom Video Communications's gross margin of last year was 0.75235404.
==> 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
Zoom Video Communications's asset turnover of this year was 0.55466762. Zoom Video Communications's asset turnover of last year was 0.65995677.
==> 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
+
1
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1
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1
+
0
=
7
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Zoom Video Communications has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.
Zoom Video Communications (NAS:ZM) 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.
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.
Zoom Video Communications Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Zoom Video Communications's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Zoom Video Communications (NAS:ZM) Business Description
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
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