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Quantitative vs. Qualitative Data: What is considered in the FHR?

Can qualitative factors be included in the rating?

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Written by Lucas Lindenlaub
Updated over 2 weeks ago

Our methodology is based purely on the accounts contained within a company's financial statements. We do not assess or factor in qualitative context. We recommend bringing up this important qualitative information in discussions with your customers, as it may be useful context to better understand your company's financial health. You can also include this qualitative context in your ActionPath plan for reference.

Definitions:

Quantitative information: all data points contained within a company's financial statements.

Common examples of qualitative information include:

  • growth

  • age

  • size

  • ease of access to capital (revolvers, banking relationships)

  • specific contracts/cash sweep agreements

  • Ownership structure

  • Private Equity Owners or Venture Capital Investors

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