FScore (Function)

Disclaimer

The FScore function calculates and returns the values that, when summed, are the "F_SCORE" described by Joseph D. Piotroski (see reference, below).

The FScore function is a multiple-output function that returns several "signal" values by reference. That is, the function returns a value to the caller itself, as well as returning values inside variables that are passed into the function by the caller (see the information regarding multiple output functions in the Remarks section, below).

If all of the fundamental signal values necessary to calculate an overall F Score are available, then the function returns the sum of the signal values, which is the overall F Score. If some or all of the fundamental values required to calculate the F Score are not available, then the function returns -1 for both the overall function and for those signal values that could not be calculated. (-1 (negative one) is an invalid value for either a signal value or for a composite F Score.)

For some sample code that calls the FScore function, open the EasyLanguage code of the built-in indicator "F Score".

Syntax

FScore( NetIncB4ExtField,

TotalAssetsField,

CFOField,

LTDebtField,

CurrRatioField,

CurrRatioPriorYrField,

CommonSharesField,

TotalRevenueField,

CostOfRevenueField,

TotalOpExpenseField,

TotalSalesField,

oF_ROA,

oF_Delta_ROA,

oF_Delta_Margin,

oF_CFO,

oF_Delta_Liquid,

oF_Delta_Lever,

oF_Delta_Turn,

oF_Accrual,

oEq_Offer );

Returns (Integer)

The oF_ROA, oF_Delta_ROA, oF_Delta_Margin, oF_CFO, oF_Delta_Liquid, oF_Delta_Lever, oF_Delta_Turn, oF_Accrual, and oEq_Offer output parameters return the values that are summed to obtain the overall F Score. The FScore function itself returns a value of either the composite F Score value (the sum of the underlying signal values), or -1 (which indicates that not all required fundamental values were available to create a composite score).

Parameters

Name	Type	Description
NetIncB4ExtField	string	Specifies the name of the fundamental field that contains data on net income before extraordinary items.
TotalAssetsField	string	Specifies the name of the fundamental field that contains data on total assets.
CFOField	string	Specifies the name of the fundamental field that contains data on cash flow from operations.
LTDebtField	string	Specifies the name of the fundamental field that contains data on long-term debt.
CurrRatioField	string	Specifies the name of the fundamental field that contains data on the current ratio.
CurrRatioPriorYrField	string	Specifies the name of the fundamental field that contains data on the current ratio from the preceding year.
CommonSharesField	string	Specifies the name of the fundamental field that contains data on the number of common shares outstanding.
TotalRevenueField	string	Specifies the name of the fundamental field that contains data on total revenue.
CostOfRevenueField	string	Specifies the name of the fundamental field that contains data on the cost of revenue.
TotalOpExpenseField	string	Specifies the name of the fundamental field that contains data on total operating expense.
TotalSalesField	string	Specifies the name of the fundamental field that contains data on total sales.
oF_ROA	numericref	The variable used to return the F_ROA value to the caller, by reference.
oF_Delta_ROA	numericref	The variable used to return the F_Delta_ROA value to the caller, by reference.
oF_Delta_Margin	numericref	The variable used to return the F_Delta_Margin value to the caller, by reference.
oF_CFO	numericref	The variable used to return the F_CFO value to the caller, by reference.
oF_Delta_Liquid	numericref	The variable used to return the F_Delta_Liquid value to the caller, by reference.
oF_Delta_Lever	numericref	The variable used to return the F_Delta_Lever value to the caller, by reference.
oF_Delta_Turn	numericref	The variable used to return the F_Delta_Turn value to the caller, by reference.
oF_Accrual	numericref	The variable used to return the F_Accrual value to the caller, by reference.
oEq_Offer	numericref	The variable used to return the Eq_Value value to the caller, by reference.

Remarks

Fundamental field names are listed in tables under the following categories:

Snapshot, Balance Sheet Assets & Liabilities, Cash Flow, Income, Shareholder Equity

When the FScore function returns -1, some or all of the output variables that are returned by reference will also be -1, indicating that the value of that output variable could not be calculated. However, even when the values of some output variables cannot be calculated, the values of output variables that can be calculated will be returned (either 0 or 1).

See Multiple Output Function for more information on using output parameters to return values by reference.

Example

For some EasyLanguage sample code that calls the FScore function, open the EasyLanguage code of the built-in indicator "F Score".

Reference

Piotroski, J. "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers", Journal of Accounting Research (38), 2000, 1-41.