Albeit of its rising stock price in the previous period, growth firms are very likely to experience low earnings and negative cash flow; consequently, any firm currently generating positive cash flows or more profits than its counterparts displays a signal of improving profitability and should earn a score of 1. For value firms, given the poor historical earnings performance, any firms generating positive profits or cash flows are demonstrating stronger financial health in the future, with positive cash flows showing improving flow of internal funds injected in operating activities, while positive earnings representing higher margins and/or improvement of cost control