The Piotroski F-Score, ranging from 0 (worst) to 9 (best) is the sum of a company's standing according to nine fundamental tests (each of which is scored 1 for pass and 0 for fail) identified by Joseph Piotroski as being useful in evaluating stocks that look cheap based on price-to-book. The approach starts with a presumption that such companies whose stocks are valued low are distressed and not likely to be adequately followed by analysts. Piotroski addresses the dearth of expert assessment through use of the nine tests, all of which can be readily calculated using basic financial data, to distinguish between firms that are genuinely distressed and those that are stronger.

For more information, please see the original research available on this link

NOTE: this factor is computed on-the-fly. Overusing it as in the ranking, rules, etc, will make your simulations slower.

Formula

These nine PASS/FAIL tests are added together resulting in a score from 0-9

PASS/FAIL Test	Our Formula
Profitability
Positive ROA	ROA%TTM > 0
Positive Op CF	OperCashFlTTM > 0
Higher ROA	ROA%TTM > ROA%PTM
Op CF > Net Income	OperCashFlTTM > NetIncCFStmtTTM
Leverage Components
Lower Debt	DbtTot2AstQ < DbtTot2AstPYQ
Higher Curr Ratio	CurRatioQ > CurRatioPYQ
No Dilution	SharesQ <= SharesPYQ
Operating Efficiencies
Higher Gross Mgn	GMgn%TTM > GMgn%PTM
Higher Asset Turn	AstTurnTTM > AstTurnPTM
NA Fallback: If the most recent quarter has NA values, such as in preliminary reports, the most recent data is not used.