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ARTH (Arch Therapeutics) Piotroski F-Score : 4 (As of Mar. 19, 2025)


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What is Arch Therapeutics Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Arch Therapeutics has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Arch Therapeutics's Piotroski F-Score or its related term are showing as below:

ARTH' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 3   Max: 4
Current: 4

During the past 13 years, the highest Piotroski F-Score of Arch Therapeutics was 4. The lowest was 1. And the median was 3.


Arch Therapeutics Piotroski F-Score Historical Data

The historical data trend for Arch Therapeutics's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arch Therapeutics Piotroski F-Score Chart

Arch Therapeutics Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.00 - 3.00 2.00 4.00

Arch Therapeutics Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 4.00 4.00 4.00 4.00

Competitive Comparison of Arch Therapeutics's Piotroski F-Score

For the Biotechnology subindustry, Arch Therapeutics's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arch Therapeutics's Piotroski F-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arch Therapeutics's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Arch Therapeutics's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was -2.457 + -2.682 + -1.469 + -5.655 = $-12.26 Mil.
Cash Flow from Operations was -1.227 + -0.863 + -0.7 + -0.912 = $-3.70 Mil.
Revenue was 0.04 + 0.046 + 0.032 + 0.031 = $0.15 Mil.
Gross Profit was 0.016 + 0.022 + 0.01 + 0.01 = $0.06 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(1.564 + 1.958 + 1.822 + 1.54 + 1.398) / 5 = $1.6564 Mil.
Total Assets at the begining of this year (Jun23) was $1.56 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Current Assets was $1.39 Mil.
Total Current Liabilities was $13.96 Mil.
Net Income was -1.889 + -1.8 + -0.902 + -1.823 = $-6.41 Mil.

Revenue was 0.002 + 0.006 + 0.017 + 0.013 = $0.04 Mil.
Gross Profit was 0.001 + -0.011 + -0.002 + -0.005 = $-0.02 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(1.573 + 2.604 + 1.716 + 1.593 + 1.564) / 5 = $1.81 Mil.
Total Assets at the begining of last year (Jun22) was $1.57 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Total Current Assets was $1.56 Mil.
Total Current Liabilities was $9.58 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Arch Therapeutics's current Net Income (TTM) was -12.26. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Arch Therapeutics's current Cash Flow from Operations (TTM) was -3.70. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=-12.263/1.564
=-7.84079284

ROA (Last Year)=Net Income/Total Assets (Jun22)
=-6.414/1.573
=-4.0775588

Arch Therapeutics's return on assets of this year was -7.84079284. Arch Therapeutics's return on assets of last year was -4.0775588. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Arch Therapeutics's current Net Income (TTM) was -12.26. Arch Therapeutics's current Cash Flow from Operations (TTM) was -3.70. ==> -3.70 > -12.26 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=0/1.6564
=0

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=0/1.81
=0

Arch Therapeutics's gearing of this year was 0. Arch Therapeutics's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=1.391/13.958
=0.09965611

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=1.56/9.579
=0.16285625

Arch Therapeutics's current ratio of this year was 0.09965611. Arch Therapeutics's current ratio of last year was 0.16285625. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Arch Therapeutics's number of shares in issue this year was 4.444. Arch Therapeutics's number of shares in issue last year was 1.28. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=0.058/0.149
=0.38926174

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=-0.017/0.038
=-0.44736842

Arch Therapeutics's gross margin of this year was 0.38926174. Arch Therapeutics's gross margin of last year was -0.44736842. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=0.149/1.564
=0.09526854

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=0.038/1.573
=0.02415766

Arch Therapeutics's asset turnover of this year was 0.09526854. Arch Therapeutics's asset turnover of last year was 0.02415766. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+1+1+0+0+1+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Arch Therapeutics has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Arch Therapeutics  (OTCPK:ARTH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Arch Therapeutics Piotroski F-Score Related Terms

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Arch Therapeutics Business Description

Traded in Other Exchanges
Address
235 Walnut Street, Suite 6, Framingham, MA, USA, 01702
Arch Therapeutics Inc is a development-stage biotechnology company. It focuses on developing products that manage surgery and interventional care faster and safer by using a novel approach to stop bleeding, control leaking, and provide other advantages during surgery and trauma care. The company's primary product candidate, collectively known as the AC5 Devices (AC5), is designed to achieve hemostasis in surgical procedures. The company operates its business operations in the United States.
Executives
Terrence W Norchi director, officer: President & CEO C/O ARCH THERAPEUTICS, INC., PO BOX 748, NATICK MA 01760
Michael S Abrams officer: CFO and Treasurer 64 RAMSHEAD ROAD, RAYNHAM MA 02767
Laurence Hicks director C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
Guy L. Fish director C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
Dan Yrigoyen officer: Vice President, Sales C/O ARCH THERAPEUTICS, INC., 235 WALNUT STREET, SUITE 6, FRAMINGHAM MA 01702
James R Sulat director
Punit Dhillon director 5820 NANCY RIDGE DRIVE, SAN DIEGO CA 92121
Richard E Davis officer: CFO & Treasurer
Avtar S Dhillon director C/O GENETRONICS INC, 11199 SORRENTO VALLEY ROAD, SAN DIEGO CA 92121
Arthur L Rosenthal director 100 CYBERONICS BLVD., HOUSTON TX 77058
Alan Barber officer: Chief Financial Officer C/O ARCH THERAPEUTICS, INC., PO BOX 748, NATICK MA 01760
William M Cotter officer: Chief Operating Officer C/O CLOSURE MEDICAL CORP, 5250 GREEN DAIRY RD, RALEIGH NC 27616

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