Financial Strength - System Factor Information
An indicator of the company's overall financial position at this point in time. It is primarily a measure of fundamental risk.
Financial Strength is calculated using:
- Cash & Cashflow - Measures cash on hand relative to company size and cashflow from operations relative to income from operations.
- Debt & Solvency - How solvent a company is and how able it is to manage and pay down its debt.
- Liquidity - Analyzes liquidity and turnover of assets versus probable liquidity requirements for a company.
Financial Strength is included in the calculation of:
- Total Score - The final number. The broadest and highest level rating for a stock.