Our dataset encompasses at least six business cycles across each industry, providing a comprehensive perspective on potential performance under varying macroeconomic conditions.
This breadth of data enables us to align a company’s financial characteristics with profiles that represent:
the strongest of companies at the best of times
the weakest of companies in the worst of times
and every scenario in between
The FHR framework evaluates how effectively a company’s management leverages internal strengths and external opportunities to mitigate internal weaknesses and external threats. These models are developed on a global industry basis. While macroeconomic variables and sovereign risk are not direct inputs, our methodology inherently reflects their influence. Broader monetary policies, for example, impact financial statements and are therefore captured within our analysis.
Importantly, the models deliberately exclude market-based signals such as share price. These indicators often introduce noise and reflect risks unrelated to the specific company being assessed. For instance, volatility in Apple’s stock may affect total market volatility, but it does not alter the counterparty risk of another firm. By excluding such factors, we deliver a pure, company-specific risk assessment.