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 | |
|---|---|---|
Borrowings above six years of earningsM. Debt-to-EBITDA — levelDebt-to-EBITDA Ratio: Latest value >= 6.0x It would take more than six years of current earnings to repay the supplier's borrowings. This is the leverage level lenders treat as distressed and is a common precursor to restructuring. | Capital structureFinancial health parameter |
Borrowings above five years of earningsM. Debt-to-EBITDA — levelDebt-to-EBITDA Ratio: Latest value >= 5.0x AND Latest value <= 6.0x Repaying borrowings would take over five years of current earnings — highly leveraged, with little capacity to take on more debt or absorb an earnings fall. | Capital structureFinancial health parameter |
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Borrowings three to five years of earningsM. Debt-to-EBITDA — levelDebt-to-EBITDA Ratio: Latest value >= 3.0x AND Latest value <= 5.0x Borrowings represent three to five years of current earnings. Manageable while trading holds up, and normal in capital-intensive sectors, but the margin for error is narrowing. | Capital structureFinancial health parameter |
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Borrowings one-and-a-half to three years of earningsM. Debt-to-EBITDA — levelDebt-to-EBITDA Ratio: Latest value >= 1.5x AND Latest value <= 3.0x Debt is comfortably serviceable from current earnings. Capital-intensive businesses will sit at the upper end of this band as a matter of course. | Capital structureFinancial health parameter |
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Borrowings repayable in under eighteen months of earningsM. Debt-to-EBITDA — levelDebt-to-EBITDA Ratio: Latest value >= 0x AND Latest value <= 1.5x Current earnings would clear all borrowings in under a year and a half — the supplier's debt load is small relative to what the business earns. | Capital structureFinancial health parameter |
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