The Piotroski F-Score is a score from 0 to 9 that measures a company's financial soundness from nine accounting criteria. A score of 7 to 9 indicates a financially healthy company; a score of 0 to 3 signals fragility.
What does the Piotroski F-Score measure?
Designed by Professor Joseph Piotroski, it evaluates three areas: profitability, debt structure and operational efficiency. Each criterion passed earns one point.
What are the 9 criteria?
Profitability: positive net income, positive operating cash flow, rising ROA, and cash flow greater than net income. Leverage: a decrease in long-term debt, a rising current ratio, no issuance of new shares. Efficiency: rising gross margin and rising asset turnover.
How to interpret the score?
How to use it in practice?
The Piotroski works well as a quality filter, especially combined with a low valuation: a discounted stock with a high score is a classic value-investing profile. In InvestIQ's scoring, it acts as a quality multiplier rather than a simple added point.
This is not investment advice.