Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Daikin Industries has an F-score of 5 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Daikin Industries's Piotroski F-Score or its related term are showing as below:
TSE:6367'
s Piotroski F-Score Range Over the Past 10 Years
Min: 4 Med: 6 Max: 8
Current: 5
During the past 13 years, the highest Piotroski F-Score of Daikin Industries was 8. The lowest was 4. And the median was 6.
Daikin Industries Piotroski F-Score Historical Data
The historical data trend for Daikin Industries'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 Daikin Industries's Piotroski F-Score
For the Building Products & Equipment subindustry, Daikin Industries'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.
Daikin Industries's Piotroski F-Score Distribution in the Construction Industry
For the Construction industry and Industrials sector, Daikin Industries's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Daikin Industries'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 (Dec23) TTM:
Last Year (Dec22) TTM:
Net Income was 48802 + 80258 + 72746 + 40846 = 円242,652 Mil. Cash Flow from Operations was 34298 + 41228 + 157100 + 99171 = 円331,797 Mil. Revenue was 995911 + 1094715 + 1130439 + 1038498 = 円4,259,563 Mil. Gross Profit was 332595 + 387491 + 395261 + 347643 = 円1,462,990 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(4174178 + 4303682 + 4725125 + 4769673 + 4681851) / 5 = 円4530901.8 Mil. Total Assets at the begining of this year (Dec22) was 円4,174,178 Mil. Long-Term Debt & Capital Lease Obligation was 円274,712 Mil. Total Current Assets was 円2,611,938 Mil. Total Current Liabilities was 円1,584,229 Mil.
Net Income was 38986 + 70551 + 85844 + 52557 = 円247,938 Mil.
Revenue was 807167 + 967755 + 1052035 + 965877 = 円3,792,834 Mil. Gross Profit was 258755 + 328399 + 350149 + 320333 = 円1,257,636 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(3506619 + 3823038 + 4078630 + 4252027 + 4174178) / 5 = 円3966898.4 Mil. Total Assets at the begining of last year (Dec21) was 円3,506,619 Mil. Long-Term Debt & Capital Lease Obligation was 円282,292 Mil. Total Current Assets was 円2,357,285 Mil. Total Current Liabilities was 円1,425,081 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.
Daikin Industries's current Net Income (TTM) was 242,652.
==> 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.
Daikin Industries's return on assets of this year was 0.05813168. Daikin Industries's return on assets of last year was 0.07070571.
==> Last year is higher ==> Score 0.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Daikin Industries's gearing of this year was 0.06063076. Daikin Industries's gearing of last year was 0.07116189.
==> 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
Daikin Industries's current ratio of this year was 1.6487124. Daikin Industries's current ratio of last year was 1.65414106.
==> 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.
Daikin Industries's number of shares in issue this year was 292.939. Daikin Industries's number of shares in issue last year was 292.89.
==> 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.
Daikin Industries's gross margin of this year was 0.34346012. Daikin Industries's gross margin of last year was 0.33158214.
==> 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
Daikin Industries's asset turnover of this year was 1.02045552. Daikin Industries's asset turnover of last year was 1.08162136.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Daikin Industries has an F-score of 5 indicating the company's financial situation is typical for a stable company.
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.
Daikin Industries Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Daikin Industries's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Daikin Industries is one of the world's largest heating, ventilating and air conditioning, or HVAC, companies. North America, Japan, China, and Europe are Daikin's four biggest markets, accounting for 24.1%, 23.7%, 16.7%, and 14.5% of fiscal 2018 revenue, respectively. Air conditioning accounted for around 90% of revenue and operating profit, while chemicals and others made up the balance.
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