Jitta Score is calculated from the previous 10 year of company’s financial statements by analyzing important 5 characteristics which great businesses generally have:
- Growth Opportunity
- Recent Business Performance
- Financial Strength
- Return to Shareholders
- Competitive Advantage
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 analysis. 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 the Jitta Score of every company across all industries and instantly know which one has better business quality.