The Financial Health Rating is the cornerstone of the Financial Health System. The rating is a single number from 0-100 that indicates the overall financial health of a given company and is an industry standard for determining a company’s viability. Financial health is the gateway to understanding a company’s underlying strengths and weaknesses.
A company’s financial health is an accurate and predictive key performance indicator that is instrumental to determining how it will perform as a business partner (vendor, supplier, credit counterparty, or other third party). We use sophisticated profiling techniques to benchmark the financial characteristics of any company against millions of observations.
- Is based purely on financial statement data (Income Statement, Balance Sheet, Cash Flow Statement)
- Employs 24 industry-specific models to account for variations in industry-specific risk
- Is calculated with 62 efficiency ratios and 11 default-resiliency ratios
- Is a uniform metric for public AND private companies
- Is company specific, with no broad market sentiment or geo-political data incorporated