Financial Analysis [400]

The Financials score consists of three sections: Quality of Financials, Performance, and Debt Servicing. Credora captures Financial information on the platform and calculates the below factors. Credora requests that borrowers upload statements every month, and at a minimum of every 3 months.

Category	Factor	Definition
Quality of Financials	Document Type (25)	Credora categorizes the submitted financial statement method of preparation. Documents are either prepared by the company or by a third party.
	Audit (25)	Credora scores the lack or presence of audited financial statements and if the audit has been performed by a Big 4 company. Big 4 is defined as KPMG, Deloitte, PwC, and EY. An extensive history of financial audits also establishes a minimum for the Visible Liquidity score.
	Recency (30)	Recency of financial statements is defined as the number of months since the last financial statement was submitted on the Credora platform.
	Financial History (50)	Financial History is defined as the number of months for which financial statements have been prepared and submitted on the Credora platform.
Performance	ROA & ROE (40)	Return on Equity and Return on Assets refer to the ratio of Net Income to Shareholder’s Equity and Assets over the prior 12 months. To highlight the importance of recent performance, Credora weights the last quarter's returns higher.
	Operating Margin (50)	Operating Margin is defined as the ratio of Operating Income (EBIT) to Revenue.
	Drawdown (40)	Maximum Drawdown is defined as the maximum monthly loss experienced by the Borrower over the prior 12 months.
Debt Servicing	Interest Coverage (60)	Interest Coverage is defined as the ratio of Operating Income (EBIT) over Interest Obligations on outstanding Debt.
	Current Ratio (80)	Current Ratio is a liquidity measure defined as the ratio of Current Assets to Current Liabilities.

The scoring curves for multiple factors are included below. On the y axis, the percentage of available points is displayed.

Recency

Financial History

Return on Assets

Operating Margin

Interest Coverage

Current Ratio