Piotroski F-Score

Credit & Risk Scoring
Updated Apr 2026 Has calculator

A 9-point scoring system that grades a company's financial health across profitability, leverage, and efficiency.

What is Piotroski F-Score?

The Piotroski F-Score, developed by accounting professor Joseph Piotroski in 2000, assigns one point for each of nine financial conditions — four measuring profitability, three measuring leverage and liquidity, and two measuring operating efficiency. Scores range from 0 to 9. A score of 8 or 9 indicates strong fundamentals; a score of 0 to 2 signals financial weakness. Piotroski found that buying high-F-Score value stocks and shorting low-F-Score value stocks significantly outperformed the market over his study period.

Formula

F-Score = F1 + F2 + F3 + F4 + F5 + F6 + F7 + F8 + F9

Worked Example

Worked example — Apple Inc. (AAPL)

FY2024 vs FY2023

Step 1  F1 (ROA > 0): ✓ (ROA = 25.7%) — F2 (OCF > 0): ✓ ($118B) — F3 (ROA ↑): ✗ (declined)
Step 2  F4 (CF quality): ✓ — F5 (LT debt ↓): ✓ — F6 (Current ratio ↑): ✗ (declined)
Step 3  F7 (No new shares): ✓ (buybacks) — F8 (Gross margin ↑): ✓ (46.2% vs 44.1%) — F9 (Asset turnover ↑): ✗
Step 4  F-Score = 6 / 9
Step 5  → Solid financial health; six of nine criteria met for Apple in FY2024

Source: Apple 10-K FY2024 (2024-11-01)

Calculate Piotroski F-Score

1 if return on assets is positive this year, 0 otherwise

1 if operating cash flow is positive this year, 0 otherwise

1 if ROA is higher than the prior year, 0 otherwise

1 if operating CF / assets > net income / assets (low accruals), 0 otherwise

1 if long-term debt ratio is lower than the prior year, 0 otherwise

1 if current ratio is higher than the prior year, 0 otherwise

1 if the company did not issue new common shares, 0 if it did

1 if gross margin is higher than the prior year, 0 otherwise

1 if asset turnover is higher than the prior year, 0 otherwise

Piotroski F-Score

Not investment advice.

How to Interpret Piotroski F-Score

< 3
Weak — financially troubled, high risk
3 – 6
Neutral — average financial health
6 – 8
Strong — good fundamentals across most criteria
> 8
Very Strong — excellent across all nine dimensions