Projected FHR vs Actual FHR

Creating an ActionPath builds the plan for improving your Financial Health Rating, but it does not update your actual rating on its own. Your FHR is calculated from your real financial data, so it only moves when those financials change and a new rating is generated.

When you build an ActionPath, the platform shows you a projected FHR — what your rating could be if you achieve the targets you have set. That number reflects the plan, not the present. Your actual FHR remains based on your most recent financial submission until you submit new financials and your rating is reassessed.

This distinction matters because the projected FHR can be quite different from your actual FHR. Seeing a projection of 66 when your actual rating is 51 does not mean your rating has moved — it means the model is telling you what could happen if your targets are achieved.

To move your actual FHR, two things have to happen. You need to execute your strategies in the business, and you need to submit updated financial statements so a new rating can be generated. A refresh of your rating without new financial data behind it will not change the result.

Financial ratios shift gradually as strategies are implemented, so do not expect significant movement after a single refresh. The most meaningful changes typically show up over multiple reporting cycles as your improvement work plays out in the numbers. Essential tier members can refresh their FHR up to four times per year, which is usually enough to track meaningful progress as financials evolve.

As your FHR changes, you can revisit your ActionPath and adjust your strategies and targets to reflect where you are in the process.

Even before your actual rating moves, a completed ActionPath delivers immediate value. It gives your clients context and confidence in your improvement trajectory while the underlying financial work is underway. It demonstrates that you understand the position your rating reflects and have a concrete plan to address it. And it creates a documented record of your improvement initiatives that you can build on over time.

For more on how the projection is calculated, see How ActionPath Models the FHR Projection. For step-by-step guidance on building your plan, see How to Use ActionPath: A Step-by-Step Guide.