F score trading strategy is based on the premise of taking into account of the several accounting parameters like ROA, accruals, CFO etc. In total there are points to score
Profitability
1-ROA(Return on Asset)
2-CFO(Cash Flow from Operations)
3-Delta ROA
4-Accruals
Capital Structure
1-Delta Leverage
2-Delta Current Ratio
3-EQ Offer(any split or public offering)
Operational Efficiency
1-Delta Margin
2-Delta Turnover
Total Fscore is the sum of scores obtained in each of these metrics out of 9 So, I went long on stocks with F-score > 7 and shorted those firms with F-score < 3
If we invested ₹100/- in the Fscore hedge during 2013-14, we would get a cummulative return of 92.3% in year 2019 with ₹192.3/-. The annual return would be 18.46%