FHR

The FHR offers clients predictive disruption insights with a thorough, objective view of a public or private company's financial health and risk of default.

The scale & risk levels

Very low risk

Probability of default: Less than 0.007%

Very low risk companies are the strongest and most resilient companies in the short term. In general, they make for the most reliable business partners and have the greatest potential for opportunity and growth.

Low risk

Probability of default: 0.008–0.1%

Low risk companies, like very low risk companies, are financially healthy, strong, and resilient in the face of economic and geopolitical challenges. Their FHR suggests high levels of efficiency and a strong foundation, supporting long-term viability and sustainable performance.

Medium risk

Probability of default: 0.11–0.89%

Medium risk companies have acceptable levels of efficiency in the short term but may show signs of deteriorating financial health or other internal challenges. To be a viable partner in the long term, they may need to improve.

High risk

Probability of default: 1–11.4%

High risk companies are experiencing low levels of efficiency and unsustainable business practice. Risk mitigation action is highly recommended to avoid disruptions and losses.

Very high risk

Probability of default: Greater than 13.3%

Very high risk companies have the weakest financial health, lack sustainability over the long term, and are likely to default. In order to avoid immediate disruption, take urgent steps to mitigate risk.

How is the FHR calculated?

The FHR is determined through a combination of near- and long-term resilience and efficiency indicators. The algorithms are fueled by 12+ million company-years of financial data across dozens of industry-specific models.

The Core Health Score

The Core Health Score measures medium-term efficiency and sustainability, based on operational efficiency and competitiveness.

Resilience indicators

The resilience indicators, combined with the Core Health Score, produce the ultimate rating and probability of default.

Case Study

Fortune Brands & RapidRatings

See how Fortune Brands used RapidRatings' data to evaluate their global private suppliers to stop supply chain disruption—before it happened.

Get a free FHR Report

Complete the form to get a free FHR Report on any public company to reveal their financial health and risk rating. See how utilizing the FHR can improve your supply chain resilience and risk management.

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