After reading more books and learning more, I realized that the financial ratios on my spreadsheet were not good enough for me choosing the companies to invest. The old version of my spreadsheet had only the basic information from the financial statement.
If I have to analyze a company through its financial statement, a better tool is required for me to understand the company from a different perceptive. Piotroski F-Score would be the tool I need.
Piotroski F-Score is to access the strength of a company financially in 9 different criteria based on profitability, leverage and operating efficiency. There is one score for each criteria, and the acceptable score is 7.
The revision of the spreadsheet will automatically calculate each criteria and the final score once the financial statements are imported. This provides me a quick analysis of the company’s financial strength not only from the basic financial ratios but also from three different perspectives utilizing the Piotroski F-Score. This will give me a bigger picture of the company.
Continue to: Cenovus Energy Inc. (CVE).
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