What Is Financial Health?

What is Financial Health?

Financial Health is a measurement of a company’s financial viability, operational efficiency, and resilience and provides forward visibility into a company’s ability to grow, weather unforeseen disruptions, and invest in infrastructure and resources, both financial and non-financial.

How is Financial Health Measured?

Financial statement and ratio analysis using an interconnected set of financial ratios that measure a company’s efficiency, profitability, and solvency… And then applying comparable period trend analysis and industry peer group benchmarking.

Financial Statement Spreading

Financial Ratio Analysis

Comparable Period Trend Analysis

Industry Peer Group Benchmarking

Why Measuring Financial Health is Important

In today’s economy, interconnectedness brings potentially big opportunities – but carries commensurate risk associated with interdependency. Evaluating counterparty financial health is more important than ever.

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Financial Ratio Analysis

In today’s economy, interconnectedness brings potentially big opportunities – but carries commensurate risk associated with interdependency. Evaluating counterparty financial health is more important than ever.

Financial Ratios

Chart of Interconnected Set of Financial Ratios

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FHR is a registered trademark of Rapid Ratings International, Inc. Core Health Score is a trademark of Rapid Ratings International, Inc. ©2022 Data and Charts provided by Rapid Ratings International, Inc.
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