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Score any company's financial health from eight figures.

This tool reads a company's own income statement, checks it for internal consistency, and classifies its operating efficiency into one of six tiers — from Distinguished to Loss-Making — then hands you a signed-off PDF report.

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What this is

A quick, standardized read on operating performance

The Global Company Evaluation Model is a lightweight scoring engine built for anyone who needs a fast, consistent opinion on how efficiently a company turns its assets into profit — without building a full financial model. You provide eight figures pulled straight from an income statement and balance sheet; the tool validates that they are internally consistent, computes a single efficiency ratio, and places the company into one of six performance tiers.

Purpose: to give business owners, students, and early-stage analysts a free, repeatable benchmark — the same yardstick applied the same way every time — so results can be compared across companies, periods, or scenarios without guesswork.

How it works

Mechanism of evaluation

  1. Enter the statement figures

    Sales, purchases, gross profit, expenses, interest, other revenue, net profit, and total assets — eight numbers, entered once.

  2. Cross-check consistency

    The tool independently recalculates gross profit (Sales − Purchases) and net profit (Gross profit + Other revenue − Expenses − Interest) and compares them against what you entered. It also confirms total assets exceed net profit. Any mismatch stops the evaluation before a misleading score is produced.

  3. Compute the efficiency ratio

    Core operating profit (before other revenue) is weighed against a profit-adjusted measure of the asset base, producing a single ratio that captures how hard the company's assets are working.

  4. Assign a performance tier

    That ratio is mapped onto six bands, from Distinguished performance down to Loss-Making, giving an at-a-glance verdict.

  5. Generate the report

    Results are rendered on-screen instantly, with a one-click PDF export for record-keeping or sharing.

Before you start

Data you'll need

All eight fields are required, and all refer to the same full financial year.

Sales
Total revenue from the year's operations.
Purchases
Cost of goods or materials purchased for the year.
Gross profit
Sales minus Purchases — used as a consistency check.
G&A expenses
General and administrative expenses, including depreciation.
Debit interest
Interest paid on borrowings for the year (enter 0 if none).
Other revenues
Any income outside core operations (enter 0 if none).
Net profit
Gross profit + Other revenues − Expenses − Interest — also a consistency check.
Total assets
Fixed plus current assets at year end. Must exceed net profit.
Reading your results

The six performance tiers

Once the efficiency ratio is computed, it lands in exactly one of these bands.

PP · DISTINGUISHED

Exceptional efficiency — profit far exceeds the asset base needed to support it.

AA · VERY GOOD

Strong, efficient use of assets; comfortably above typical performance.

GG · GOOD

Solid and stable — assets are being put to reasonably productive use.

VGVG · ACCEPTABLE

Workable performance with clear room to improve asset use or cut costs.

EE · WEAK

Profit is positive but thin against the asset base; worth a closer look.

LL · LOSS-MAKING

Core operations run at a loss before other revenue; likely needs restructuring.

Worked example

A practical walk-through

Consider a company that reports the following for the year:

Sales500,000
Purchases300,000
Gross profit (Sales − Purchases)200,000
G&A expenses50,000
Debit interest10,000
Other revenues5,000
Net profit145,000
Total assets600,000
Efficiency ratio ≈ 2.64 VGVG · ACCEPTABLE

Both consistency checks pass (200,000 = 500,000 − 300,000, and 145,000 = 200,000 + 5,000 − 50,000 − 10,000), and total assets (600,000) exceed net profit, so the evaluation proceeds. Core operating profit before other revenue works out to 140,000, which — measured against the adjusted asset base — lands this company in the Acceptable tier: a workable operation with visible room to improve.

Where it's used

Applications

Why use it

Advantages

What it won't tell you

Limitations

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The calculator

Enter your year's figures below. All fields are required.