The F-factor

What if one can measure the financial strength of various stocks before selecting the most profitable one? Great, isn't it? The same question came to the mind of Joseph Piotroski, an accounting professor at the University of Chicago, long back. And the outcome? The methodology, Piotroski F-Score, saw the light of the day. With the F-Score, investors can identify outperforming stocks based on nine criteria. These criteria focus on a company's recent financial performance in terms of its profitability, financial leverage along with liquidity and operating efficiency. The following are the nine criteria of F-score. While the first four measure profitability, the next three emphasise the condition of the balance sh