Business Quality Score (BQS)

12 בינו׳ 2022

Business Quality Score (BQS) is an indicator that can be used to determine how strong, safe and efficient a business is. Generally speaking, a negative reading under 0 indicates a poor quality business, a reading between 1-10 indicates an average quality business and a reading above 10 indicates a high quality business. This indicator is only applicable on stocks, not on forex, futures or crypto.

The indicator uses fundamental data to calculate the reading and hence doesn't have any changeable settings for the user. The score is based on the profitability of a business and how efficiently it uses capital to generate shareholder returns. The indicator also looks at the debt, leverage and liquidity of the business to help determine the score. Generally speaking businesses with lot's of debt, high leverage and low liquidity will lead to lower scores.

This indicator is designed more for stock investors with longer timeframes and isn't suited towards short term traders. It can be used as part of an overall investment process to help identify high quality businesses that are suitable for long term investing. It can be used to monitor current investments to see if a stock's overall business quality is improving or deteriorating.

To get access to this indicator PM or email me to my address shown below.

Enjoy :)


Disclaimer: All my scripts and content are for educational purposes only. I'm not a financial advisor and do not give personal finance advice. Past performance is no guarantee of future performance. Please trade at your own risk.

15 במרץ 2024

הערות שחרור

Improved visualization of the indicator to be easier to interpret. Nothing changed to the underlying indicator logic.

15 במרץ 2024

הערות שחרור

Updated indicator visualization for easier interpretation. Indicator logic remain the same.