The Piotroski F-Score, explained
A single number from 0 to 9 that scores how financially healthy a company is right now, and whether it’s getting stronger or weaker. Here’s what each point means, and how to read the total.
What the F-Score measures
The F-Score was created by accounting professor Joseph Piotroski in 2000. He wanted a simple way to separate financially strong companies from weak ones using nothing but the financial statements. The result is a nine-point scorecard: a company earns one point for each test it passes, so scores run from 0 (weakest) to 9 (strongest).
Crucially, most tests compare this year to last year. The F-Score doesn’t just ask “is this a good business?” It asks “is this business improving?” That is what the year-over-year tests measure: the direction of the numbers rather than their level.
The nine tests
The tests fall into three groups: profitability, leverage & liquidity, and operating efficiency. Toggle each one below to see how the score is built.
How to read a high vs low score
Improving profitability, falling leverage, and no dilution. The 2000 study grouped these together.
Some strengths, some soft spots. Read the individual tests to see which way the business is trending.
Deteriorating fundamentals. A cheap stock here is often a value trap, not a bargain.
A useful rule of thumb from the research: a score of 7 or higher is the classic threshold for a “financially healthy and improving” company. Tenet’s own Piotroski playbook sets its bar at 8 or higher. Value investors often combine a cheap valuation (say, a low price-to-book) with a high F-Score to avoid buying cheap-for-a-reason stocks.
Screening for it on Tenet
Tenet runs the F-Score as a nightly playbook: the Piotroski F-Score screen lists every US stock of $200M or more in market value scoring 8 or higher, recomputed each night with all nine tests shown for every name. The free view publishes the top 5 by Tenet Score, each with its F-Score, and the rest comes with Premium. Every stock report also shows its own current F-Score with the nine tests broken out, so you never see the number without the reasoning.
Each Ruleset is independently developed by Tenet based on investment criteria described in publicly available sources associated with the referenced investor. References to third-party names and trademarks are for identification purposes only. Tenet is not affiliated with, sponsored by, endorsed by or otherwise associated with any referenced investor or trademark owner. Any selections, analyses, backtests, scores and performance information reflect Tenet's own interpretation and implementation and have not been prepared, reviewed or approved by the referenced investor or trademark owner. Third-party names and trademarks remain the property of their respective owners. Inputs are derived from regulatory filings and normalized within Tenet's fundamentals database. Not investment advice.
To build the idea yourself in the screener, add the score to a custom screen (Ultimate). Tenet’s own playbook uses the stricter 8+ cut:
See the syntax in the formula documentation, or read how we compute the inputs in methodology notes.
Limitations to keep in mind
The F-Score is backward-looking. It reads last year’s statements, so it can lag a fast-moving story. It was designed for typical operating companies, so it’s less meaningful for banks, insurers, and early-stage firms with negative earnings. And a high score isn’t a “buy”: it tells you the business is healthy and improving, not that the price is right. Pair it with valuation and your own judgment.