Work out supplier financial health score instantly with clear inputs, formula shown and shareable results.
Supplier financial screening weights liquidity, leverage and profitability. Your share of their revenue matters alongside the score: being a very large customer creates mutual dependency, which is protective in the short run and dangerous if you ever need to exit.
Health score
Score = Liquidity x 35% + Leverage x 35% + Profitability x 30%, each scaled 0-100
Scaling anchors
Current ratio 0.8-2.0; D/E 3.0 down to 0; net margin 0-8%
Increase monitoring frequency, hold strategic inventory, secure tooling and intellectual property, and qualify an alternative before you need it.
Both. It gives leverage but means your withdrawal could destroy them, which limits your ability to switch and increases their reliance on your payment terms.