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The Piotroski F-score in 9 questions
Nine simple tests on profitability, leverage and efficiency, each scored 0 or 1.
The idea
Joseph Piotroski, then at Chicago and later Stanford, published nine binary criteria in 2000 to separate improving companies from deteriorating ones: positive profit, positive operating cash flow, rising return on assets, cash above profit, falling debt, rising liquidity, no new shares issued, rising gross margin, rising asset turnover.
How to read it
8 or 9: fundamentals clearly improving. 0 to 2: deterioration on most fronts. The nine tests are detailed on every Scorvest company page.