RapidRatings produces all FHR reports on a trailing-12-month income statement basis, regardless of whether the submission covers a full year or an interim period. This keeps ratings consistent across submissions made at different times of the year. For any interim submission (Q1, Q2, or Q3), the model annualizes the data using one of three methods depending on what financial history is available.
The "Period End Date" on your report indicates the financial period up to which your company has been assessed. For an interim period, this represents the trailing twelve months through the specified date.
The three annualization methods
Which method applies depends on what you submit alongside your current interim period.
Proportional roll
Used when you provide the current year interim period and the prior full year.
The current interim period's income statement is annualized by adding the current-period data to a proportion of the prior year-end's income statement data. The proportion depends on the length of the current interim period. For example, if the current interim period is 9 months long, the prior year's income statement figures are multiplied by 3/12 and added.
Perfect roll
Used when you provide the current year interim period, the prior year interim period, and the prior full year.
For any line item on the report, annualized interim figures are calculated using this formula:
Current YTD + Prior Year End minus Prior YTD
This produces an exact trailing-12-month picture of performance.
Gross up or down
Used when only a current interim is provided and no prior year data is available.
The current period's income statement is annualized by multiplying actual figures by 12 divided by the number of months in the period. This method is only applied when the period provided is between 9 and 15 months. Periods shorter than 9 months or longer than 15 months cannot be grossed up or down.
How to get the most accurate interim rating
To be rated using the most accurate data possible, submit either:
A full trailing 12 months of income statement data, or
The current year interim period plus the equivalent prior year interim period, which enables the perfect roll calculation.
Non-quarterly submissions
Reports are generated only for Q1, Q2, Q3, and year-end periods. If you submit 4-month financials ending in April against a December 31 year-end, the report will display a March 31 period end date. The FHR score itself is unaffected: the income statement is still annualized correctly using 4 months of current-year data and 8 months of prior-year data.
Why previously rated periods may not appear on your report
A previously rated period may not appear on your current FHR Report for one of three reasons:
The previous period was an interim (Q1, Q2, or Q3) that was rated independently without a corresponding prior year-end.
Your company's year-end date has changed since the prior rating.
There is a gap in time between the previously rated periods and your newest periods.
Why your interim income statement numbers may look different on your report
Because of the trailing-12-month methodology above, interim income statement figures on your FHR Report will not match your own financial statements line for line. Three factors drive this:
Rolling aggregate methodology. Using a 12-month aggregation to derive income statement figures inherently differs from a single-quarter presentation. Your own financials show the quarter in isolation; the FHR Report shows the quarter rolled into a trailing-12 picture.
PPP loans. RapidRatings classifies PPP loans as "Other Equity" rather than long-term liabilities because of their forgivable nature. If your own balance sheet treats PPP as debt, this is a known and intentional difference.
Rounding. Values in reports are rounded to millions, which creates small differences between summed components and totals.
These differences reflect the model's commitment to a forward-looking, comparable view of financial health across companies and periods, rather than a line-for-line reproduction of a single company's accounting statements.