Piotroski F-Score: A 9-Point Test of Financial Strength—7 or Above is a Good Sign
Piotroski Calculator Light
The Piotroski F Score Calculator is a tool designed to assess the financial strength and performance of a company based on specific accounting metrics. Named after its creator, Joseph Piotroski, a finance professor at the University of Chicago, the F Score evaluates various fundamental indicators to determine the overall health and potential for improvement of a company.
The calculator typically considers nine financial metrics, including profitability, leverage, liquidity, and operating efficiency, among others. Each metric is assigned a score based on predetermined criteria, with higher scores indicating stronger financial performance and lower risk.
By inputting relevant financial data into the calculator, you can generate an F Score that quantifies the company’s financial condition. This score serves as a valuable tool for investors and analysts seeking to make informed decisions about investing in or assessing the health of a company.
It simplifies the evaluation process by automating the calculation of this composite score, providing you with a quick and convenient way to gauge a company’s financial strength and potential for future growth.
The Piotroski F-Score is a financial scoring system developed by Stanford professor Joseph Piotroski to measure the financial strength of a company. It is based on nine fundamental criteria across three categories:
Profitability (e.g., return on assets, operating cash flow)
Leverage, Liquidity, and Source of Funds (e.g., debt levels, current ratio)
Operating Efficiency (e.g., gross margin, asset turnover)
Each criterion scores either 1 (pass) or 0 (fail), so the total score ranges from 0 to 9.
High scores (7–9) indicate strong financial health and often signal undervalued companies worth further analysis.
Mid-range scores (4–6) suggest average financial strength.
Low scores (0–3) may indicate financial weakness and higher risk.
In value investing, a Piotroski Score of 7 or above is generally considered good.
Top 10 Best Quality Piotroski Stocks:
This list is updated daily by our Stock Screener Tool, covering more than 60,000 stocks worldwide. Discover this and many other Top-Lists inside the Fairvalue Calculator Premium Tool – try it now for free!
Piotroski F-Score Calculator — Pro Version
Nine accounting signals, one clear score (0–9). 7+ is considered strong.
This calculator implements the original nine Piotroski signals across profitability, leverage & liquidity, and operating efficiency. Each test is binary—1 (pass) or 0 (fail)—yielding a total score from 0 to 9. Scores 7–9 indicate strong financial health, 4–6 average, 0–3 weak. Enter two years of inputs (NI, CFO, Total Assets, Long-Term Debt, Current Assets/Liabilities, Shares, Revenue, Gross Profit) to get the score, pass/fail breakdown, and a quick interpretation. Note: Screening tool—use alongside your own research; not investment advice.
Piotroski F-Score (Professional 9/9)
Nine accounting signals across profitability, leverage & liquidity, and efficiency.
Method notes
- ROA uses avg assets for current year: (TA_t + TA_t-1)/2; prior ROA approximated with TA_t-1.
- Leverage = LTD / TA · Current Ratio = CA / CL · Gross Margin = GP / Sales · Asset Turnover = Sales / avg assets.
- No equity issuance = Shares_t ≤ Shares_t-1.
- Binary scoring: pass = 1, fail = 0; total 0–9.
Interpretation: 8–9 very strong · 7 strong · 4–6 average · 0–3 weak.
FAQ: Piotroski F-Score
A simple 0–9 checklist that flags financial strength using nine accounting signals. Great to pair with value screens.
What is the Piotroski F-Score?
Which nine signals are used?
- Profitability: Net income > 0; Operating cash flow > 0; ROA improved year over year; Cash flow > Net income (quality of earnings).
- Leverage/Liquidity: Leverage (long-term debt/asset ratio) decreased; Current ratio improved; No new shares issued.
- Operating efficiency: Gross margin improved; Asset turnover improved.
How do I read the score?
- 8–9: very strong fundamentals
- 5–7: average/okay
- 0–4: potential weakness—dig deeper
What period does the tool compare?
How should I use F-Score with other tools?
- Screen for cheap stocks in the Stock Screener.
- Filter by F-Score (e.g., ≥7) to avoid weak balance sheets.
- Value finalists on Stock Valuation or with a DCF.
Limitations I should know about
- Works best for non-financial companies; banks/insurers use different balance-sheet logic.
- YoY “improvements” can be cyclical or due to one-offs—cross-check.
- Share-count changes from mergers/options can affect the “no issuance” test.
Quick checklist before trusting the score
- Use the same currency and fiscal period for both years.
- Ignore clear one-offs when judging profitability and margins.
- Confirm leverage and share-count from the notes to the accounts.
What’s a simple workflow on this page?
- Run your universe through the F-Score.
- Keep candidates with 7–9; review 5–6 if valuation is compelling.
- Proceed to valuation and position sizing; manage diversification in the Portfolio Manager.
