What does Montier C-Score mean?
James Montier aimed to create a simple scoring system that would highlight companies that may be 'cooking the books'. The C-Score was the result.
An analogue to the Piotroski, it measures six inputs in a binary fashion to create a score between zero and six. Inputs include: the divergence between net income and cash-flow, increasing days sales outstanding, increasing days sales of inventory, increasing current assets to revenues, declining depreciation relative to PPE and high total asset growth.