Financial health

Piotroski F-Score

The Piotroski F-Score, developed by accounting professor Joseph Piotroski, scores a company's financial strength from 0 to 9 across nine separate criteria. It was designed to separate genuinely solid companies from those that merely look cheap (low P/B).

Formula

F-Score = sum of 9 tests (each "yes" = 1 point)

How to interpret it

A score of 7–9 is strong (financially sound). 4–6 is moderate (mixed signals). 0–3 is weak (financially fragile). The nine tests cover profitability (4 points), leverage & liquidity (3 points), and operating efficiency (2 points).

Example

A company with an F-Score of 8 has passed 8 of the 9 criteria — a healthy picture in profitability, debt management and efficiency. A company with an F-Score of 2 has fallen short on many critical tests.

Common uses

Separate genuinely strong companies from those that merely look cheap (low P/B).
Screen for high F-Score stocks (7–9) as a sign of solid financial health.
Review the nine individual signals to see exactly where a company is strong or weak.
Combine a high F-Score with a low valuation to find quality value candidates.

Limitations

The F-Score relies on historical financial data and doesn't guarantee future results.
Its quality is only as good as the underlying accounting data.
A high F-Score alone doesn't prove a stock is cheap or a good investment — evaluate it together with valuation metrics.

In Fin Screener

Fin Screener calculates the Piotroski F-Score for every stock, showing all nine criteria individually — you see which tests it passed and which it failed, understanding a company's strengths and weaknesses at a glance.

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