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
Torrent Power 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 Torrent Power's Piotroski F-Score or its related term are showing as below:
BOM:532779'
s Piotroski F-Score Range Over the Past 10 Years
Min: 1 Med: 5 Max: 8
Current: 7
During the past 13 years, the highest Piotroski F-Score of Torrent Power was 8. The lowest was 1. And the median was 5.
Torrent Power Piotroski F-Score Historical Data
The historical data trend for Torrent Power'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.
Competitive Comparison of Torrent Power's Piotroski F-Score
For the Utilities - Independent Power Producers subindustry, Torrent Power'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.
Torrent Power's Piotroski F-Score Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Torrent Power's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Torrent Power'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.
*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.
Torrent Power's current Net Income (TTM) was 21,174.
==> 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.
Torrent Power's return on assets of this year was 0.08462036. Torrent Power's return on assets of last year was 0.01928652.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Torrent Power's gearing of this year was 0.32554783. Torrent Power's gearing of last year was 0.29398852.
==> 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
Torrent Power's current ratio of this year was 1.07543402. Torrent Power's current ratio of last year was 0.85003912.
==> 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.
Torrent Power's number of shares in issue this year was 480.617. Torrent Power's number of shares in issue last year was 480.617.
==> 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.
Torrent Power's gross margin of this year was 0.21595459. Torrent Power's gross margin of last year was 0.30173117.
==> 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
Torrent Power's asset turnover of this year was 1.01519181. Torrent Power's asset turnover of last year was 0.59711233.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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7
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Torrent Power has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.
Torrent Power (BOM:532779) 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.
Torrent Power Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Torrent Power's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The company's gas-fired facilities constitute most of its energy-producing capacity. Torrent Power generates the vast majority of its revenue from the supply of power generated by its facilities and transmitted through its power grids to areas of Western and Northern India. Its sales are fairly evenly divided among residential, commercial, low tension and high tension consumers. The low tension customer class would include smaller manufacturing units, while high tension would be composed of heavier industrial entities.
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