Empowering Investors with Data-Driven Insights for Informed Decision-Making
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.
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.
