ATC FSR-Score
Rule 1:
.
Loss making company is confirmed financially stressed.
Don't invest.
.
Rule 2:
.
For Profit Making Companies :
.
ATC FSR-Score (Financial Stress Resistance by ATC)
= √[ ROA × ROIC ]
.
Financial Stressed IF:
.
FSR-Score < 5
.
Note 1:
.
ATC FSR-Score
= ATC Financial Stress Resistance Score
.
ATC FSR-Score is Not Applicable to Bank and Insurance Companies.
Note 2:
.
A Financial Stressed company will not compound.
.
A Financial Stress Resistant company will compound and the Compounding Runway (number of years of compounding period) and the Compounding Rate are Proportional to the ATC FSR-Score.
.
The Larger the ATC FSR-Score, the Longer the Compounding Runway Period and the Larger the Compounding Rate.
