Browse the out-of-the-box insights that score supplier financial risk — grouped by family, with the score and the rule that triggers each one.
| Insight | Parameter | |
|---|---|---|
Less than half of reported profit converts into cashF. Cash flow quality — levelCash Flow Quality Ratio: Latest value <= 0.5 Operating cash flow is under 50% of reported net profit. Profit is being recognised well ahead of the cash arriving, which points to collection problems, inventory build-up, or aggressive revenue recognition. | Financial performanceFinancial health parameter |
Cash conversion weak (0.5–0.8)F. Cash flow quality — levelCash Flow Quality Ratio: Latest value >= 0.5 AND Latest value <= 0.8 Between 50% and 80% of reported profit is backed by operating cash. Partial conversion — worth monitoring rather than acting on. | Financial performanceFinancial health parameter |
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Cash conversion close to profit (0.8–1.0)F. Cash flow quality — levelCash Flow Quality Ratio: Latest value >= 0.8 AND Latest value <= 1.0 Operating cash flow is between 80% and 100% of reported net profit — most of the profit is arriving as cash, which is the normal pattern. | Financial performanceFinancial health parameter |
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Earnings fully backed by cashF. Cash flow quality — levelCash Flow Quality Ratio: Latest value >= 1.0 Operating cash flow exceeds reported net profit — every unit of profit is backed by cash actually received. Note that very high ratios usually reflect heavy depreciation in a capital-intensive business rather than exceptional earnings quality. | Financial performanceFinancial health parameter |
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Cash conversion below half of profit for two years runningF'. Cash flow quality — persistenceCash Flow Quality Ratio: Value for consecutive periods (2 years) <= 0.5 Operating cash flow has stayed under 50% of reported profit for two consecutive years. A repeated gap between profit and cash is an accounting-quality red flag rather than a timing effect. | Financial performanceFinancial health parameter |
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Earnings fully cash-backed for three years runningF'. Cash flow quality — persistenceCash Flow Quality Ratio: Value for consecutive periods (3 years) >= 1.0 Operating cash flow has matched or exceeded reported profit in each of the last three years — consistently high earnings quality. | Financial performanceFinancial health parameter |
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