LAIX Inc. Sponsored ADR
LAIX Technology Software Application
Operating cash flow growth for five consecutive years.
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LAIX Inc. Sponsored ADR (LAIX) Piotroski F-score
LAIX Inc. Sponsored ADR's Piotroski F-score for fiscal 2021 is 5 out of 9: 5 of nine tests of profitability, leverage and efficiency passed, up from 4 in fiscal 2020.
Piotroski F-score, annual
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Annual newest first
| Period | Piotroski F-score | Change (points) |
|---|---|---|
| FY2021 | 5 | 1.00 |
| FY2020 | 4 | — |
How fiscal 2021’s score is made up
| Test | This year | Year before | Result | Points |
|---|---|---|---|---|
| Positive return on assets | 19.99% | (60.40%) | Pass | 1 |
| Positive operating cash flow | (24.35m) | (46.37m) | Fail | 0 |
| Rising return on assets | 19.99% | (60.40%) | Pass | 1 |
| Cash flow above net income | (33.75m) | 14.13m | Fail | 0 |
| Falling long-term leverage | 0.00 | 0.00 | Pass | 1 |
| Rising current ratio | 0.15 | 0.28 | Fail | 0 |
| No new shares issued | 3,573,000 | 3,529,400 | Fail | 0 |
| Rising gross margin | 79.50% | 71.50% | Pass | 1 |
| Rising asset turnover | 2.29 | 1.49 | Pass | 1 |
| Piotroski F-score | Mixed | 5 | ||
How the Piotroski F-score works
One point for each of nine tests, this fiscal year against the one before: positive return on assets, positive operating cash flow, rising return on assets, cash flow above net income, falling long-term leverage, a rising current ratio, no new shares issued, a rising gross margin and rising asset turnover. The ratios are the ones on this site, so each can be checked.
Joseph Piotroski (2000) called 8–9 high and 0–1 low; reading it in three bands is the common convention:
| 7–9 | Strong — most fundamentals improved |
|---|---|
| 4–6 | Mixed |
| 0–3 | Weak — most fundamentals deteriorated |
Where this differs from the paper: return on assets is on average rather than beginning-of-year assets, and weighted basic shares stand in for shares issued. The score is shown only when all nine tests can be worked out, which takes three fiscal years; banks and insurers, which report no current assets or gross profit, have none.
Piotroski F-score against peers
| Company | Piotroski F-score |
|---|---|
| EGAN eGain Corporation compare | 7 |
| TRAK ReposiTrak Inc. compare | 7 |
| TONX TON Strategy Company compare | 5 |
| LAIX LAIX Inc. Sponsored ADR | 5 |
| TIOG Tingo Group, Inc. compare | 5 |
| DUOT Duos Technologies Group, Inc. compare | 5 |
| HUCK Huckleberry.ai, Inc. compare | 5 |
| MRT MARTI TECH INC compare | 4 |
| DMRC Digimarc Corporation compare | 3 |
What Piotroski F-score is
The Piotroski F-Score tells an investor how many signs of improving profitability, funding and efficiency a company shows against a year earlier.
One point for each of nine tests against a year earlier: positive return on assets, positive operating cash flow, rising return on assets, cash flow above net income, falling long-term leverage, rising current ratio, no new shares issued, rising gross margin, and rising asset turnover