Table 7 C score model description.
From: Creating quality portfolios using score-based models: a systematic review
Component | Derivation |
|---|---|
C-score | C1 + C2 + C3 + C4 + C5 + C6 |
C1 | 1 if the divergence between net income and cash flows exceeds the previous year, else 0 |
C2 | 1 if the receivable days exceeds the previous year, else 0 |
C3 | 1 if the inventory days exceeds the previous year, else 0 |
C4 | 1 if the other current assets previous year, else 0 |
C5 | 1 if the ratio of depreciation to gross fixed assets is lower than the previous year, else 0 |
C6 | 1 if the total assets grow over 10% in last year 1, else 0 |
