Piotroski F-Score Calculator
Score a stock's financial health across 9 criteria: profitability, leverage, and operating efficiency.
Scores of 7-9 indicate strong fundamentals.
The Piotroski F-Score
The Piotroski F-Score is a 9-point scoring system developed by Stanford accounting professor Joseph Piotroski in 2000. It measures the overall financial strength of a company using publicly available accounting data. Each criterion is binary: 1 point if the condition is met, 0 if not. The total score ranges from 0 (weakest) to 9 (strongest).
Three categories with 9 criteria:
Profitability (4 points):
| Criterion | Condition |
|---|---|
| P1 — ROA | Net income / total assets > 0 |
| P2 — OCF | Operating cash flow is positive |
| P3 — ROA trend | ROA improved versus last year |
| P4 — Accruals | Cash from operations exceeds net income |
Leverage and Liquidity (3 points):
| Criterion | Condition |
|---|---|
| L1 — Leverage | Long-term debt ratio decreased |
| L2 — Liquidity | Current ratio improved |
| L3 — Dilution | No new shares issued this year |
Operating Efficiency (2 points):
| Criterion | Condition |
|---|---|
| E1 — Gross margin | Gross margin improved versus last year |
| E2 — Asset turnover | Asset turnover ratio improved |
Interpreting the score:
| Score | Signal |
|---|---|
| 8 – 9 | Strong — high-quality financials, potential buy signal |
| 6 – 7 | Above average — solid fundamentals |
| 4 – 5 | Neutral — mixed results |
| 2 – 3 | Weak — multiple financial concerns |
| 0 – 1 | Very weak — avoid or short candidate |
How to use it:
Piotroski designed the score to work best when combined with a value screen. Start with low P/B stocks (typically below 1.0), then filter for F-Scores of 7 or higher. This eliminates financially distressed cheap stocks and keeps only strong ones.
Limitations:
The score is backward-looking and uses annual report data. It works best for traditional asset-heavy businesses, not for growth companies with negative earnings. Always verify raw data from annual filings — the score is only as good as the inputs.