"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."Warren Buffett
The Solvency Score is a metric used to assess a company's long-term solvency risk. It is an essential tool for investors to evaluate the financial health and risk profile of a company over the long term.
The Solvency Score is generated using a multi-factor algorithm that takes into account a range of financial ratios and indicators such as Debt to Equity Ratio, Interest Coverage Ratio, and Current Ratio, among others. These factors are normalized and weighted to produce a single score on a scale of 0 to 100.
|0-30||High risk of insolvency|
|70-100||Low risk of insolvency|
The Bottom Line
The Solvency Score is a powerful, data-driven metric that offers an instant snapshot of a company's long-term financial health.