Balance Sheet

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 This is a nine-point score that analyzes the health and strength of a company’s balance sheet. If the company meets the following criteria, it receives a point for each. A “9” is a perfect score.

  1. Positive Net Income
  2. Positive return on assets in the current year
  3. Positive operating cash flow in the current year
  4. Cash flow from operations being greater than net Income
  5. Lower ratio of long-term debt in the current period, compared to the previous year
  6. Higher current ratio this year compared to the previous year
  7. No new shares were issued in the last year
  8. A higher gross margin compared to the previous year
  9. A higher asset turnover ratio compared to the previous year
A company with a 9 out of 9 has an executive board that is extremely shareholder friendly and interested in boosting shareholder value. 

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