RapidRatings® requests prepared financial statements covering an annual period: this includes a Balance Sheet, an Income Statement, and a Statement of Cash Flows. Together, these financial statements have all of the information that we need in order to perform a robust and meaningful analysis of financial health. If a company would like to provide more limited disclosure, we can perform our analysis as long as we have all of the following line items.
| Balance Sheet | Income Statement | Cash Flow Statement |
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We require statements which are dated within twelve months of the requested date. For example, on January 1st 2024 we will not be able to accept financials statements dated before January 1st, 2023. |
How much history does RapidRatings need?
If this is the first time we are rating a company, we request financial statements from the previous two annual periods as well as the most recent half-year, if available. This allows us to view the trend in Financial Health Rating over time. By doing so, we can present a more accurate picture that is less sensitive to outliers.
| While it’s preferable to have the last two fiscal years, as well as an interim period, we are able to produce a discrete, point-in-time rating with one year of historical data. |
Does RapidRatings require any information in addition to financial statements?
Yes. We also ask for either SIC code, or a brief description of business so that we can understand the company better. The reason for this is that it comes to understanding financial health, we does not employ a ‘one size fits all’ approach. Instead, we employ 24 different industry-specific models to measure financial health.
Our team will choose the model that is most appropriate for the company. This ensures that we can benchmark the company against others like it and emphasize the metrics that have proven effective over time in forecasting financial health.
We also require currency, units and a clear period end date.