Financial Health Score
Combines key financial metrics across liquidity, solvency, profitability, and efficiency into a single composite health score. Provides a clear, weighted assessment of overall financial condition with drill-down into each dimension.
Accounting - Financial Health Score.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- Reducing dozens of financial metrics into one actionable score
- Identifying which financial dimension (liquidity, solvency, profitability, efficiency) is weakest
- Tracking overall financial health trend over multiple periods
- Providing a quick summary for stakeholders who do not read detailed financials
- Establishing early warning thresholds for financial deterioration
Who This Is For
- CEOs and board members needing a high-level financial summary
- CFOs monitoring overall financial condition across periods
- Lenders or investors performing due diligence
- FP&A analysts building executive dashboards
Inputs
- $Current assets
- $Current liabilities
- $Total debt
- $Total equity
- $Net income
- $Total revenue
Outputs
- Composite financial health score (0-100)
- Liquidity sub-score
- Solvency sub-score
- Profitability sub-score
- Efficiency sub-score
- Weakest dimension flag
How Calculations Work
Each financial dimension is scored independently. Liquidity uses the current ratio. Solvency uses the debt-to-equity ratio. Profitability uses the net profit margin. Efficiency uses the asset turnover ratio. Each metric is converted to a 0-100 scale using configurable benchmark ranges. The composite score is a weighted average of the four sub-scores, with weights that can be adjusted to reflect the organization's priorities. The weakest dimension is flagged for focused attention.
Example Use Case
Scenario: A company has a current ratio of 1.8, debt-to-equity of 0.6, net profit margin of 12%, and asset turnover of 1.1. Default equal weights of 25% each.
Result: Liquidity scores 75/100. Solvency scores 80/100. Profitability scores 70/100. Efficiency scores 65/100. Composite health score is 72.5/100. Efficiency is flagged as the weakest dimension.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
How is the 0-100 scale determined?
Each metric is mapped to a range. For example, a current ratio below 0.5 scores 0, above 2.5 scores 100, and values in between are interpolated linearly. The ranges are editable on the CONFIG sheet.
Can I change the weights of each dimension?
Yes. The CONFIG sheet has weight fields for each dimension. They must sum to 100%. For example, a capital-intensive business might weight solvency at 35% and reduce efficiency to 15%.
What does the composite score mean practically?
It is a relative indicator. Scores above 75 suggest strong financial health. Scores between 50-75 indicate areas needing attention. Below 50 signals significant financial stress.
Can I add additional metrics to the scoring?
The template supports four dimensions with one metric each by default. You can add metrics to a dimension by modifying the LOGIC sheet, but the sub-score formula will need adjustment.
How often should I recalculate the score?
Quarterly is standard. Monthly is better if the business is in a volatile period. The template stores historical scores so you can track the trend.
Download Financial Health Score
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.