Company Data Score (CDS) — financial health rating

Is the company financially healthy? The Company Data Score (CDS) answers that question as a single number between 0 and 100. Developed by companydata.dk, the score is calculated automatically from the company's financials, management history, audit reports, and owner backgrounds. You'll find it as a badge on the company page — a quick signal about financial health before you dig into the details.

What do the CDS rating levels mean?

The CDS score translates into one of five rating levels, shown as colour-coded badges:

• 80-100: Excellent (green) — strong financial health, stable management, clean audit reports
• 60-79: Good (green) — solid fundamentals with minor concerns
• 40-59: Moderate (grey) — average company with no particular remarks
• 20-39: High risk (orange) — multiple warning signs that should be investigated
• 0-19: Critical (red) — serious financial distress or bankruptcy

Four scoring categories

CDS is calculated from four categories, each with its own weight:

1. Financial health (40%)

The heaviest category examines the company's core financials:

• Equity ratio — the ratio of equity to total assets. An equity ratio above 30% earns full marks
• Profitability — profit margin (profit relative to revenue). Above 10% earns full marks
• Liquidity — can the company meet short-term obligations? Measured as current assets divided by short-term liabilities. A ratio above 2.0 earns full marks
• Financial trend — are revenue and profit growing? Positive development in both earns full marks

2. Solvency and stability (25%)

• Company age — older companies are typically more stable. 10+ years earns full marks
• Debt level — the ratio of total liabilities to assets. Below 50% earns full marks
• Management stability — frequent changes in directors and board members can indicate problems. Long tenure and few changes score higher

3. Audit quality (15%)

• Audit opinion — an unqualified (clean) opinion earns full marks. A qualified opinion earns half, and an adverse opinion or disclaimer earns zero
• Going concern — if the auditor has expressed doubt about the company's ability to continue operating, this sub-score drops to zero

4. Owner risk (20%)

This category examines the background of the company's current owners and directors. Have they previously been involved in bankrupt companies? We look at the bankruptcy rate across their portfolio — the share of their companies that have gone bankrupt. Owners with many bankruptcies in their history pull the score down regardless of portfolio size.

When is the CDS score overridden?

Certain situations override the calculated score:

• Under bankruptcy — score set to 0
• Under liquidation — score capped at 5
• Under reconstruction — score capped at 15
• Negative equity — significant score reduction
• Going concern warning — significant score reduction
• Owner with 3+ bankruptcies — large score reduction

How to use CDS

CDS is designed as a screening tool — not a final verdict. Use the score to quickly evaluate potential suppliers, clients, or partners. If you spot a low score, dig into the financial data and ownership structure to understand why. A high score confirms that the fundamentals are solid, but it doesn't replace thorough due diligence.