What does Piotroski F-Score, Last Year mean?
The Piotroski F-Score is a a 9 point scoring system that analyses the trend in a company's accounts across a set of tests that cover profitability, leverage, liquidity, sources of funds and efficiency. In summary, the nine metrics are: i) Net Income, ii) Operating Cash Flow, iii) Return on Assets Ð Score 1 if the ROA is higher in the current period compared to the previous year, iv) Quality of Earnings, v) Decrease in Leverage, vi) Increase in Liquidity, vii) Absence of Dilution, viii) Gross Margin and ix) Asset Turnover.
Stockopedia explains Piotroski F-Score, Last Year...
Piotroski showed that stocks scoring 8 or 9 significantly outperformed stocks scoring 1 or 2. It is a good shorthand for deeper financial analysis and more recent studies have shown that focusing on high F-Score stocks can reduce the volatility of returns in a value portfolio.
