Cash to Debt Ratio
Metrics are only as good as the data that drive them. The best fundamental data in the world drives our metrics. Here’s proof from some of the most respected public & private institutions in the world.
To demonstrate the difference our proprietary Adjusted Fundamental data makes, we continue our series of reports that show how our Credit Ratings are more reliable than legacy firms’ ratings. This report explains how our “Adjusted” Cash to Debt ratio is better than the “Traditional” ratio because the Traditional ratio is based on unscrubbed financial data. Cash to Debt is one of the 5 ratios that drives our Credit Ratings. Get explanations and comparisons for the other four metrics here.
Better Analytics: A New Paradigm for Credit Ratings
Superior fundamental data drives material differences in our Credit Ratings and research compared to legacy firms’ research and ratings. This report will show how Cash to Debt ratings for 5% of S&P 500 companies are misleading because they rely on unscrubbed data.
We also detail the differences that better data makes at the aggregate[1], i.e. S&P 500[2], level and the individual company level (see Appendix) so readers can easily quantify the benefits of our superior data.
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