How We Score
Full methodology — published for complete transparency
Not financial advice. The Business Health Score is an algorithmic indicator for informational purposes only. It is not an audit, certification, or guarantee of business performance. Always consult a qualified professional for financial decisions.
The idea
A Business Health Score is a single number (0–100) that summarises the financial health of your business across seven dimensions. It is designed to be calculated from 8 numbers any business owner can find in minutes — no accounting software, no CA, no complicated reports.
The score tells you what a doctor's check-up tells you — is everything working as it should, and where do you need attention?
The 8 inputs
- Field 1 — Monthly Revenue / Sales: Total sales billed in the last month (cash + credit)
- Field 2 — Amount Actually Collected: Cash physically received — not billed
- Field 3 — Total Expenses: Rent + staff + stock purchased + utilities + other
- Field 4 — Cash in Hand + Bank Balance: Physical cash + bank balance right now
- Field 5 — Customers Owe You (Receivables): Total amount owed by customers
- Field 6 — You Owe Suppliers (Payables): Total amount owed to suppliers
- Field 7 — Stock / Inventory Value: Estimated value of current stock
- Field 8 — Monthly Loan / EMI Payment: Total monthly debt repayments
The 7 dimensions
Profitability
25% weight
Gross profit margin and net profit margin. Are you making money after all costs?
Cash Flow
20% weight
Collection efficiency (Cash collected ÷ Revenue). Are you converting sales to real cash?
Working Capital
15% weight
Current ratio (Assets ÷ Liabilities). Can you meet short-term obligations?
Liquidity
15% weight
Cash buffer in months. How many months can you run if sales stop?
Efficiency
10% weight
Expense ratio (Expenses ÷ Revenue). What percentage of revenue goes to costs?
Growth
10% weight
Month-on-month revenue change. Is the business expanding, flat, or shrinking?
Debt Burden
5% weight
Debt-to-revenue ratio. Is your loan repayment sustainable relative to income?
The formula
Score = (Profitability × 0.25)
+ (Cash Flow × 0.20)
+ (Working Cap × 0.15)
+ (Liquidity × 0.15)
+ (Efficiency × 0.10)
+ (Growth × 0.10)
+ (Debt Burden × 0.05)
Each dimension is scored 0–100 before weighting.
Final score is rounded to the nearest whole number.
Score bands
| Score | Band | What it means |
|---|
| 85–100 | 🌟 Thriving | Strong across all dimensions. Business is healthy and growing. |
| 70–84 | ✅ Healthy | Good fundamentals. One or two areas to optimise. |
| 50–69 | ⚠️ Watch | Mixed signals. Address weakest dimensions before they compound. |
| 30–49 | 🔴 At Risk | Cash or profitability under stress. Act now. |
| 0–29 | 🚨 Critical | Immediate attention needed. Seek advice. |
Important limits of the score
- The score is only as accurate as the numbers you enter
- It uses last month's numbers — a snapshot, not a trend
- Industry-specific benchmarks are not applied in Version 1 (planned for Version 2)
- Seasonal businesses may score differently in peak vs off-peak months
- The score does not account for goodwill, brand value, or future orders
Independent review
ScoreMyBiz intends to commission an independent review of this methodology by a qualified Chartered Accountant at 1,000 users. The methodology and results of that review will be published on this page.
Questions or feedback
If you disagree with your score or believe our methodology should be adjusted, we want to hear from you. Email info@scoremybiz.com with subject "Methodology Feedback".