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The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
LPL Financial Holdings 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 LPL Financial Holdings's Piotroski F-Score or its related term are showing as below:
During the past 13 years, the highest Piotroski F-Score of LPL Financial Holdings was 8. The lowest was 4. And the median was 6.
The historical data trend for LPL Financial Holdings'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.
LPL Financial Holdings Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Piotroski F-Score | Get a 7-Day Free Trial | 7.00 | 6.00 | 5.00 | 7.00 | 6.00 |
LPL Financial Holdings Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Piotroski F-Score | Get a 7-Day Free Trial | 7.00 | 8.00 | 7.00 | 6.00 | 4.00 |
For the Capital Markets subindustry, LPL Financial Holdings'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.
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings'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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Net Income was 285.52 + 224.291 + 217.555 + 288.764 = USD1,016 Mil. Cash Flow from Operations was 402.813 + 173.17 + 142.548 + 425.901 = USD1,144 Mil. Revenue was 2468.804 + 2522.383 + 2643.829 + 2832.593 = USD10,468 Mil. Gross Profit was 759.213 + 765.399 + 739.225 + 794.205 = USD3,058 Mil. Average Total Assets from the begining of this year (Mar23) to the end of this year (Mar24) was (9167.805 + 9392.196 + 9487.329 + 10385.48 + 11017.539) / 5 = USD9890.0698 Mil. Total Assets at the begining of this year (Mar23) was USD9,168 Mil. Long-Term Debt & Capital Lease Obligation was USD3,680 Mil. Total Current Assets was USD6,137 Mil. Total Current Liabilities was USD3,886 Mil. |
Net Income was 160.545 + 232.331 + 319.082 + 338.884 = USD1,051 Mil. Revenue was 2038.887 + 2163.058 + 2333.187 + 2417.832 = USD8,953 Mil. Gross Profit was 514.404 + 629.629 + 748.241 + 787.539 = USD2,680 Mil. Average Total Assets from the begining of last year (Mar22) to the end of last year (Mar23) was (7773.331 + 7736.486 + 9695.783 + 9482.226 + 9167.805) / 5 = USD8771.1262 Mil. Total Assets at the begining of last year (Mar22) was USD7,773 Mil. Long-Term Debt & Capital Lease Obligation was USD2,942 Mil. Total Current Assets was USD5,060 Mil. Total Current Liabilities was USD3,148 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.
LPL Financial Holdings's current Net Income (TTM) was 1,016.
==> 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.
LPL Financial Holdings's current Cash Flow from Operations (TTM) was 1,144.
==> 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 (Mar23) |
= | 1016.13 | / | 9167.805 | |
= | 0.11083678 |
ROA (Last Year) | = | Net Income | / | Total Assets (Mar22) |
= | 1050.842 | / | 7773.331 | |
= | 0.13518555 |
LPL Financial Holdings's return on assets of this year was 0.11083678. LPL Financial Holdings's return on assets of last year was 0.13518555.
==> 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.
LPL Financial Holdings's current Net Income (TTM) was 1,016. LPL Financial Holdings's current Cash Flow from Operations (TTM) was 1,144.
==> 1,144 > 1,016 ==> 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: Mar24) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Mar23 to Mar24 |
= | 3680.077 | / | 9890.0698 | |
= | 0.37209818 |
Gearing (Last Year: Mar23) | = | Long-Term Debt & Capital Lease Obligation | / | Average Total Assets from Mar22 to Mar23 |
= | 2942.336 | / | 8771.1262 | |
= | 0.33545704 |
LPL Financial Holdings's gearing of this year was 0.37209818. LPL Financial Holdings's gearing of last year was 0.33545704.
==> 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
Current Ratio (This Year: Mar24) | = | Total Current Assets | / | Total Current Liabilities |
= | 6136.572 | / | 3886.05 | |
= | 1.57912842 |
Current Ratio (Last Year: Mar23) | = | Total Current Assets | / | Total Current Liabilities |
= | 5060.204 | / | 3148.183 | |
= | 1.60734112 |
LPL Financial Holdings's current ratio of this year was 1.57912842. LPL Financial Holdings's current ratio of last year was 1.60734112.
==> 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.
LPL Financial Holdings's number of shares in issue this year was 75.463. LPL Financial Holdings's number of shares in issue last year was 79.974.
==> 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 |
= | 3058.042 | / | 10467.609 | |
= | 0.29214332 |
Gross Margin (Last Year: TTM) | = | Gross Profit | / | Revenue |
= | 2679.813 | / | 8952.964 | |
= | 0.29932132 |
LPL Financial Holdings's gross margin of this year was 0.29214332. LPL Financial Holdings's gross margin of last year was 0.29932132.
==> 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 (Mar23) |
= | 10467.609 | / | 9167.805 | |
= | 1.14177919 |
Asset Turnover (Last Year) | = | Revenue | / | Total Assets at the Beginning of Last Year (Mar22) |
= | 8952.964 | / | 7773.331 | |
= | 1.15175386 |
LPL Financial Holdings's asset turnover of this year was 1.14177919. LPL Financial Holdings's asset turnover of last year was 1.15175386.
==> 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 | + | 0 | + | 0 | + | 1 | + | 0 | + | 0 | |
= | 4 |
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
LPL Financial Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.
LPL Financial Holdings (NAS:LPLA) 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.
Thank you for viewing the detailed overview of LPL Financial Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Sallie R. Larsen | officer: MD, Chief Human Cap. Officer | ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02018 |
Aneri Jambusaria | officer: Managing Director | C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121 |
Dan H. Arnold | officer: MD & Division President, FIS | C/O LPL INVESTMENT HOLDINGS INC., ONE BEACON STREET, BOSTON MA 02108 |
Richard Steinmeier | officer: Managing Director | C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109 |
Althea Brown | officer: Managing Director | C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121 |
Matthew Enyedi | officer: Managing Director | C/O LPL FINANCIAL HOLDINGS, INC., 75 STATE STREET, 22ND FLOOR, BOSTON MA 02109 |
Glavin William Francis Jr | director | 6803 SOUTH TUCSON WAY, CENTENNIAL CO 80112 |
Richard P Schifter | director | 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102 |
Michelle Oroschakoff | officer: MD, Chief Risk Officer | 75 STATE STREET, 24TH FLOOR, BOSTON MA 02109 |
Matthew J Audette | officer: Chief Financial Officer | C/O DAVIS POLK & WARDWELL, 450 LEXINGTON AVENUE, NEW YORK NY 10017 |
Albert J Ko | director | C/O LPL FINANCIAL HOLDINGS INC., 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121 |
Brent Simonich | officer: EVP, CAO and Treasurer | C/O E*TRADE FINANCIAL CORP., 11 TIMES SQUARE, 32ND FLOOR, NEW YORK NY 10036-9992 |
Kabir Sethi | officer: Managing Director | C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121 |
Edward Fandrey | officer: Managing Director | C/O LPL FINANCIAL, 4707 EXECUTIVE DRIVE, SAN DIEGO CA 92121 |
George Burton White | officer: MD, Chief Investment Officer | ONE BEACON STREET, 22ND FLOOR, BOSTON MA 02108 |
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