How much riskeconomicandstrategicfactorspose for the operationsof a firm, its profitability and long-term solvency? Weuse the rate of Return on Assets (ROA) toanswerthisquestion.
To separate the junk from the hidden gems, he required that the returnonassets be positive and that ROA for the most recent fiscal year be greater than the return from the previous year.
The Piotroski: High F-Score screen comes close, using returnonassets, also referred to as ROA. However, the screen looks for a year-over-year improvement in ROA instead of a specific number or level.