What is Jitta Score?
Jitta Score is the number representing the business performance of the company for the past 10 years on a scale from 1 to 10. The higher the score, the better the company. Having Jitta Score of more than 7 consistently means the company can increase market shares and generate more profits, which leads to an increase in fair price over time. It’s a great opportunity to invest in those companies at a fair price, then see your money compounded year after year as the company grows.
Jitta calculates Jitta Score by comprehending all important financial data of the company for the past 10 years. There are many factors and numbers involved in the calculation process. Basically, the great company with very high Jitta Score should have these following criteria:
- Revenue is increasing every year
- Net Profit is increasing every year
- Operating Margin is expanding
- Little or no long term debt or liabilities
- Shareholder Equity is increasing every year
- Return on Equity is consistently high
- Low Capital Expenditure
- Share repurchase and dividend payout every year
Jitta Score is a qualitative numbers. It is always calculated by taking into account how financial numbers related to each other in the real business approach in various industries. Therefore, you can easily compare Jitta Score of every company across all industries and instantly know which one has better business quality.
Jitta Score will be updated every quarter when the company publicly announces new financial statement. So you can see whether the business is getting better or worse over time.
Jitta Score is the easiest way for you to check out the business quality of any stocks to “buy a Wonderful Company”
Learn more about Jitta Score Methodology and read an article on “The Origin and Concept of the Jitta Score”.