An explanation of the growth score and what each of the bands means.
The Growth Score is an algorithm our data team has uniquely designed to predict the likelihood of business growth. It consists of 4 growth score bands:
Very Likely (65 - 100 ) - Companies within this band are the most likely to grow based on the similarity of the financial attributes of historic growth companies. This means these companies will have healthy liquidity and profitability ratios and will not be in any significant debt.
Likely (55 - 65) - Companies within this band are likely to grow based on the similarity of the financial attributes of historic growth companies. This means these companies may have healthy liquidity or profitability ratios but may be in small amounts of debt. These companies are more likely to grow than not due to a higher similarity to growth companies studied but are not as likely to grow as those in the ‘very likely to grow’ band.
Unlikely (35 - 55) - Companies within this band are unlikely to grow based on the similarity of the financial attributes of historic growth companies. This means these companies will likely not have healthy liquidity and profitability ratios and may be in some debt, or are large organisations.
Very Unlikely (0 - 35) - Companies within this band are the least likely to grow based on the similarity of the financial attributes of historic growth companies. This means these companies will have low liquidity and profitability ratios and may be in significant debt (or are large organisations), reducing the likelihood of achieving 20% turnover growth.
Most business owners would prefer to work with companies that are going to grow because growing businesses will have a higher demand for your services and are more likely to spend more in the future.
However, it's important to bear in mind that a low growth score doesn't mean that a company is in financial distress, many large organisations have a low growth score as their size makes it difficult to grow significantly in a short period.
NOTE: We may be doing maintenance if the growth score does not appear on your report. If this issue persists, don't hesitate to contact support - we're happy to help!