Stock Diagnostics - Diagnose before you buy... Monitor what you own
Home FAQs Subscribe Learn More Login

About OPS Rankings

StockDiagnostics.com monitors a public company's Operational-cashflow Per Share ("OPS") and assigns it an "OPS Ranking". OPS Rankings measure the long term risk associated with a company's ability to remain in business. They were discovered from in-depth research conducted by StockDiagnostics.com on operational cash flow. These studies revealed that a company's "OPS" (Operational- cashflow Per Share) logically falls into a mathematical sequence that ranks it into one of eight distinctive "risk" categories. Each of the categories is based on a company's operating cash flow for each of its last 4 quarters and its cumulative operating cash flow for its most recent 12 months.

The OPS Ranking is based on a computer-generated, precise and objective calculation of a company's quarterly cash flow consistency and its annualized cash flow at the end of its most recent quarter. There are eight possible OPS Rankings scaled one (1) through eight (8), with an OPS Ranking of one (1), being the highest ranking and an eight (8), being the lowest. Historical research has shown that companies with the highest OPS Ranking (1) have the least risk for going out of business and companies with the lowest OPS Ranking (8) have the most risk.


About OPS Ranking Upgrades and Downgrades

OPS Rankings are upgraded, downgraded or reiterated each time a company files a quarterly report and at any time that its financial statements are amended. OPS Ranking upgrades and downgrades may predict changes in the momentum of a company's stock price and its inherent or presumed financial health. All OPS Ranking downgrades, even a downgrade from the highest OPS Ranking of "1" to the second highest OPS Ranking of "2" should be treated with equal caution. Similarly, all OPS Ranking upgrades should be considered as equally positive. Even an upgrade from the lowest OPS Ranking of "8" to the second lowest OPS Ranking of "7" can be treated with guarded optimism.


StockDiagnostics.com OPS RankingsTM

Summary

StockDiagnostics.com monitors a public company's Operational-cashflow Per Share ("OPS") and assigns it an "OPS Ranking." "OPS Rankings" are based on computer-generated, precise and objective calculations. Rankings are upgraded with each company's quarterly financial report. Rankings are scaled 1 through 8, with number one (1), being the highest ranking and number eight (8), the lowest. A "Rankings Suspended" status is given for all companies diagnosed with, "The EPS Syndrome" during the most recent four quarters.

How are OPS RankingsTM Determined?

"OPS" (Operational- cashflow Per Share) Rankings fall into one of eight distinctive categories. The companies with Positive OPS (Operational-cashflow Per Share) for the last four "composite" quarters were separated from those with "Negative" OPS (Operational-cashflow Per Share). "The Positive and Negative groups were each divided into four "natural" subdivisions, creating a total of eight, "composite four-quarter" ranking categories.

    Positive OPS Rankings: 1- 4 (OPS positive previous 12 mos)

  1. FOUR quarters Positive "OPS"
  2. THREE quarters of Positive "OPS," ONE quarter negative
  3. TWO quarters of Positive "OPS," TWO quarters negative
  4. ONE quarter of Positive "OPS," THREE quarters negative
  5. Negative OPS Rankings: 5-8 (OPS negative previous 12 mos)

  6. ONE quarter of Negative "OPS," THREE quarters Positive
  7. TWO quarters of Negative "OPS," TWO quarters Positive
  8. THREE quarters of Negative "OPS," ONE quarter of Positive
  9. FOUR quarters of Negative "OPS"

©2002-2005 StockDiagnostics.com  Patents Pending.    
Disclaimer Terms of Service Privacy About Us