Table 5 F-Score Model.
From: Creating quality portfolios using score-based models: a systematic review
Component | Derivation |
|---|---|
F-score | F1 + F2 + F3 + F4 + F5 + F6 + F7 + F8 + F9 |
F1 | 1 if the return on assets is positive in the current year else 0 |
F2 | 1 if operating cash flow is positive in the current year else 0 |
F3 | 1 if a change in return on assets is higher than the previous year else 0 |
F4 | 1 if (operating cash flow ÷ Total assets) > return on assets else 0 |
F5 | 1 if the leverage decreases compared to the previous year else 0 |
F6 | 1 if the current ratio improves over the previous year else 0 |
F7 | 1 if new shares are not issued last year else 0 |
F8 | 1 if the gross margin improves over the previous year else 0 |
F9 | 1 if the assets turnover ratio improves over the previous year else 0 |
