FMP
Piotroski Score
Altman Z-Score:
The Altman Z-score is calculated by using the following formula:
A = working_capital / total_assets
B = retained_earnings / total_assets
C = ebit / total_assets
D = market_cap / total_liabilities
E = revenue / total_assets
Altman Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Piotroski Score:
The score consists of the following criteria (each rule assigning one point):
Profitability Criteria:
The Rules for this Criteria (4 points):
1. roa_ttm > 0: Score +1
2. net_income_ttm > 0: Score +1
3. operating_cashflow_ttm > 0: Score +1
4. operating_cashflow_ttm > net_income_ttm: Score +1
Leverage, Liquidity, and Source of Funds Criteria:
The Rules for this Criteria:
5. current_ratio_this_year > current_ratio_last_year: Score + 1
6. long_term_debt_this_year < long_term_debt_last_year: Score + 1
7. outstanding_shares_this_year < outstanding_shares_last_year: Score + 1
Operating Efficiency Criteria:
The Rules for this criteria:
8. gross_margin_quarter > gross_margin_last_year_quarter: Score +1
9. asset_turnover_ttm > asset_turnover_last_year: Score + 1
The Piotroski score is a discrete score between zero and nine that reflects nine criteria used to determine the strength of a firm's financial position.
