FUNDAMENTAL SIGNALS / NINE-POINT SCORE
Add nine paper-defined financial-statement signals into a transparent strength score.
METHOD / WORKED EXAMPLE
The workspace keeps each binary decision visible and groups the total exactly as the paper does, helping users avoid an opaque score copied from an unverified data feed.
WORKED DEFAULT
The default scenario passes all four profitability tests, all three leverage/liquidity tests, gross-margin improvement, but not asset-turnover improvement. Its F-score is therefore 8.
READ THE RESULT
A point means a condition passed, not that the change was economically large. Inspect the underlying values, accounting choices, and direction of each change before comparing entities.
ASSUMPTIONS AND LIMITS
This historical screening score is not a recommendation, forecast, fraud test, or substitute for statement review.
COMMON QUESTIONS
No. The score summarizes nine historical accounting signals and does not value securities, forecast returns, or incorporate price, governance, industry structure, dilution terms, off-balance-sheet exposures, or new events. Piotroski studied a particular high book-to-market setting. Use the result as a reproducible screen, then examine the statements and investment thesis independently.
The original method intentionally converts each condition into a binary indicator and sums the indicators. A tiny improvement can therefore earn the same point as a large improvement, while a near miss earns none. This calculator preserves that design and shows category subtotals, but users should retain the underlying ratios to understand magnitude and data quality.
Calculate the current and prior values from consistently classified annual statements, using the definitions in the source paper. Record the amounts, denominators, periods, and any restatements outside the calculator, then choose Yes only when the specified comparison is satisfied. Do not mix trailing periods, currencies, consolidated scopes, or vendor fields with different accounting definitions.
RELATED TOOLS
Use boundary
Translate each paper-defined comparison into one binary pass or fail, then add the four, three, and two-signal category subtotals.
F-score = four profitability signals + three leverage/liquidity signals + two operating-efficiency signals.