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Here is a good article on Piotroski:

http://www.fool.com/news/commentary/2005/commentary05012001.htm

You have a couple of options. You can calculate the score yourself:

Looking at the morninstar.com website:

1. type in the symbol

2. click on "snapshot" (far left column)

3. click on "morningstar stock grades" (just to the right of the performance chart)

4. Look at ROA for the trailing 12 months and the previous year.
(if it is increasing then score a 1, if not a 0)

5. Look at asset turnover (if increasing a 1, if not a 0)

6. Look at current ratio (if increasing a 1, if not a 0)

7. Go over the left column again and click on "financial statements"

8. First look under the "10-yr income tab" and look at gross margins.
if increasing over the last couple years, give a 1. If not, a 0.

9. Next, click on the "10-yr balance tab". Look at total assets and long-term debt from the previous year. Divide LTD/assets. Do this again under "latest quarter" numbers. If this number is decreasing, score a 1. Otherwise a 0. (note: you can often skip the math if you notice that the company has 0 debt. If that is the case, I score a "1" if the companies assets are increasing)

10. Click on 5 year restated tab. Look at net income and cash flow from ops. If cash flow is positive, score a 1.

11. If cash flow is greater then net income also score a 1.

12. Look at "total shares". If shares are the same or decreasing from the previous year then score a 1. If shares are increasing score a 0.

13. Remember, all companies on the MFI website have a positive ROA so score a 1 for this as well.

14. Total your score (should be a maximum score of 9)

Remember to use only companies with market cap less the 700 or so. The score does not work well for larger companies.


Your other option is to use a spreadsheet that downloads the data. The best one that we have used so far is divebomber's:

http://www.filespace.org/divebomber

This requires excel. When you use this, double check a couple of things first before accepting the Piotroski score it gives:

1. Make sure that the spreadsheet has ALL of the data required on the income, cash flow, and balance statments. In 1 instance, the database (MSN central) the spreadsheet uses did not have the balance sheet info. Therefore the Piotroski score was incorrect. To fix this, you can type in or paste the info. Then click "update" to get the Piotroski score.

2. With the spreadsheet, if Long Term Debt on the balance sheet is 0 (zero), the spreadsheet will automatically give a score of zero for the LTD/Total Assets criteria. If the LTD is zero, as long as total assets are increasing, you should still score a 1 for this.

My recommendation would be to at least practice calculating the score on the morningstar.com site so you get a feel for what you are looking for. Once you have a good handle on that, you could use the spreadsheet to do all the math for you, but double check its work as highlighted above.

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