Company Financial Health Check
Instantly assess the financial health of any UK company. Solvency analysis, 19 financial ratios, Altman Z-Score bankruptcy prediction, and industry benchmark comparison — all computed automatically from official Companies House data.
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What a financial health check covers
Solvency Analysis
Altman Z-Score predicts whether a company is at risk of insolvency within two years. Assessed against safe (>2.9), grey (1.23–2.9), and distress (<1.23) zones.
Liquidity Assessment
Current ratio and quick ratio show whether the company can meet short-term obligations. Working capital in absolute £ terms. Cash on hand.
Profitability Analysis
Gross margin, EBITDA margin, net profit margin, return on assets, and return on equity — compared against ONS industry benchmarks for the same SIC code.
Leverage & Gearing
Equity ratio (equity as % of total assets) and gearing ratio (total liabilities / equity) — the most meaningful leverage measures for UK private companies.
Cash Conversion Cycle
Days Sales Outstanding (DSO), Days Payable Outstanding (DPO), and inventory days — revealing how efficiently the company converts operations to cash.
Red Flag Detection
12+ automated red flags with high/medium/low severity ratings. Covers financial distress signals, filing failures, and early warning indicators.
The four pillars of company financial health
1. Liquidity — can the company pay its bills?
Liquidity measures whether a company has enough short-term assets to cover short-term liabilities. The current ratio (current assets ÷ current liabilities) is the primary indicator. UK service businesses typically operate with current ratios of 1.0–1.4 — a ratio below 1.0 means current liabilities exceed current assets, a warning sign requiring investigation.
2. Solvency — can the company survive long-term?
Solvency goes beyond day-to-day cashflow to ask whether the company's total asset base can support its total liabilities over time. The Altman Z'-Score distils this into a single number using five financial ratios. For UK private companies, the score is adapted (Z' variant) to account for the absence of market data.
3. Profitability — is the company generating returns?
A profitable company generates earnings above its costs. Net profit margin, EBITDA margin, and return on assets (ROA) are the key measures. Profitability varies enormously by sector — a 5% net margin is excellent for wholesale distribution but weak for professional services. FinancialInsight benchmarks each figure against ONS data for the correct SIC code.
4. Leverage — how much debt is the company carrying?
Leverage measures how much of the company's capital structure is funded by debt versus equity. UK SMEs often have minimal paid-up share capital (£100 is standard), which distorts traditional debt/equity ratios. FinancialInsight uses the equity ratio (equity ÷ total assets) and gearing ratio (total liabilities ÷ equity) as more meaningful measures for UK private companies.
Frequently asked questions
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