Core Health is the foundation of our risk model. We measure Core Health through an industry-specific analysis of 62 financial ratios. Core Health is then dynamically combined with our 11 Resilience Indicators to calculate the FHR®.
What is Core Health?
Core Health measures how efficiently a company is structured and operated. For example, how efficiently is a company using its assets to generate revenue, profits, and cash flow. Specifically, Core Health indicates a company’s level of financial sustainability over the next 2-3 years, providing insights on a company’s capability as a supply chain partner. Companies with strong Core Health are better positioned to take advantage of opportunities in the market and withstand shocks.