Quality Score
Returns a composite quality score for a stock on a scale of 1-100. Higher scores indicate higher quality businesses.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Score Interpretation
| Score Range | Interpretation |
|---|---|
| 80-100 | Excellent quality, strong fundamentals |
| 60-79 | Good quality |
| 40-59 | Average quality |
| 20-39 | Below average quality |
| 1-19 | Poor quality, weak fundamentals |
Factors Considered
The quality score typically considers:
- Return on equity (ROE)
- Return on assets (ROA)
- Profit margins
- Debt levels
- Earnings consistency
- Balance sheet strength
Notes
- Score is relative to peers
- Higher is better
- Quality stocks may command premium valuations
Examples
=RankQuality("AAPL")=RankQuality("MSFT")=RankQuality("JNJ")=RankQuality(A1)=IF(RankQuality("AAPL")>80,"High Quality","")When to Use
- Quality investing stock screening
- Identify financially strong companies
- Avoid value traps
- GARP investing analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Valuation assessment | RankValue() |
| Technical analysis | RankTechnical() |
| Overall stock rank | RankOverall() |
| Specific metrics | ROE, ROA, margin functions |
Common Issues & FAQ
Q: What is a good quality score? A: Above 70 indicates good quality. 80+ suggests excellent fundamentals. Combine with value score for GARP (Growth at Reasonable Price) investing.
Q: Why do cyclical companies have lower scores? A: Cyclical businesses have more variable earnings and margins, which can lower quality metrics. Quality scores favor consistent businesses.
Q: How is this different from F-Score? A: Quality score is a continuous 1-100 scale. F-Score is a 0-9 discrete score. Both assess quality but use different methodologies.
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?