Procurement Magazine March 2025 | Page 127

trend ? Rapid declines or slow and steady deterioration is a big red flag .
“ Industry comparison is another key factor . Is the company ’ s financial health above or below the industry average ? How does its trend compare to peers ? Deviations from industry trends , positive or negative , warrant attention .
“ Lastly , understanding the drivers of financial health is essential . Liquidity , leverage , profitability , coverage and efficiency are core indicators , with red flags arising from weaknesses in any of these areas .”

“RapidRatings provides visibility into private company financials alongside public company assessments ”

JOHN D ’ ALEO , CEO , RAPIDRATINGS