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Why is it that sometimes Jitta Score stays put when some Jitta Factors, such as Recent Performance, have improved?
Jitta Factor is only one part of Jitta Score, so that can happen sometimes. Mostly, Jitta Factor and Jitta Score should move in the same direction. Recent Performance is a bit special because this value is considerably different from Jitta Score and other Jitta Factors. Other values are calculated from long-term financial statements but Recent Performance is calculated from the latest 4-8 quarters so that we can see the current business trend clearer.
Recent Performance is one of the factors that help you make decision along with Jitta Score and other Jitta Factors that offer analyses from a long-term perspective. It keeps you more up-to-date with the company’s latest situation. Some companies’ financial statements look good from a long-term perspective, but a closer look at their latest 3-4 quarters might reveal a rocky situation. We should see through that and take notice.
During the first and second quarters, in particular, where only 50% data has been reported, Recent Performance can change considerably. But it doesn’t have much weight in Jitta Score since it’s only a relatively short period of Recent Performance compared to all the long-term financial statements. However, Jitta Score will be more affected in case of a much worse performance during the 2nd-4th quarters in order to warn you that there might be something wrong with this company.