One number that tells you, at a glance, how the business is doing financially. A health score does not replace reading the statements - it points you straight to the parts worth reading.

Definition

Business Health Score - a single figure, typically on a 0 to 100 scale, that summarises a business's overall financial health by combining several signals from its financial statements into one trackable number.

Formula
Health Score (0-100) blends:
  Profitability + Cash and Liquidity
  + Revenue Trend + Balance-Sheet Strength

Common uses

  • Quick status - where does the business stand this period
  • Trend - is the score rising or falling over time
  • Triage - which area dragged the score down

Watch out

A score is a summary, not a diagnosis. A single high number can hide a weak cash flow statement or a fragile balance sheet, so always read the detail behind it.

See how the score is produced on the Financial Review feature page, learn what feeds it in How to Read Your Financial Statements, and browse Business Intelligence & Analytics.