Why Comparing Financial Health Ratings Matters
Understanding a company’s Financial Health Rating in isolation is valuable—but comparing it to its peers can provide critical context for decision-making. Here are a few common scenarios where peer comparison is essential:
Competitive Bidding: When evaluating bids, comparing one company against other bidders helps identify relative strengths and risks.
Investment Decisions: New investments are often assessed alongside existing holdings—by size, geography, or portfolio allocation.
Credit Analysis: Analysts frequently benchmark prospective counterparties against companies with similar credit limits or within the same industry or region.
Supply Chain & Vendor Management: Selecting new or replacement suppliers requires comparing them to current partners to ensure continuity and reliability.
These processes can be time-intensive, and in many cases, time is of the essence. That’s where RapidRatings can help. to create tailored peer comparisons in minutes—giving you the perspective you need without the wait.
This report mirrors the familiar layout of the standard Peer Benchmark Report, ensuring consistency while offering flexibility to define your own peer group.
The Peer Benchmark compares a company to a pre-set sector of global public companies while the Custom Peer Benchmark lets you determine that peer set. |
Example of the Custom Peer Benchmark:
Key Features
Orange Benchmark Column: Displays average metrics for your selected peer group—whether it’s ongoing suppliers, industry counterparties, or competing bidders—so you can quickly benchmark the company of interest.
FHR Breakdown: Category performance scores let you evaluate relative strengths and weaknesses of your prospective supplier, partner, or investment against your chosen sample set.
Financial Indicators: Analyze liability structure, liquidity, and interest coverage to substantiate credit limits or investment allocations.
You’ll spend time selecting the right peer group and making strategic decisions based on the analysis. You shouldn’t spend time collating and summarizing data—we handle that for you.
The Custom Peer Benchmark report is accessed through Report Builder. In this case, you need to construct the peer group by building portfolios. |