Financial Health Score Explained — 6 Dimensions

You can have great profitability but bad cash flow. Or vice versa — good liquidity but low profit margin. If you only look at one metric, you get a skewed picture. A composite health score combines multiple dimensions and gives you one simple number that tells you how you are doing overall. It's like a medical check-up: You don't just have one blood pressure number — the doctor assesses heart, lungs, kidneys, etc. together. The health score does the same for your business.

(1) Liquidity (25%) — Can you pay your bills for the next 3 months? Measures cash runway, overdraft usage, and DSO. (2) Profitability (25%) — Are you making real money? Measures profit margin, contribution margin, and year projection. (3) Solvency (15%) — Are you robust against bad times? Measures equity ratio and gearing. (4) Efficiency (15%) — How fast does your business cycle turn? Measures DSO, DPO, and inventory turnover. (5) Growth (10%) — Are you moving in the right direction? Measures revenue growth rate and customer growth. (6) Compliance (10%) — Do you have the statutory requirements handled? Measures document completeness, VAT accuracy, and deadline compliance. Each dimension is scored from 0 to 100, and the total score is the weighted average.

Your score falls into one of 5 ranges: Critical (0–30): Serious problems on multiple dimensions. Action required now. Concerning (31–50): Major weaknesses. Risk of deterioration. Acceptable (51–70): Stable but has improvement potential. Good (71–85): Healthy business, keep up the good work. Excellent (86–100): Top-tier performance, a role model. Most Danish SMEs start in 'Acceptable' and work their way up. The target is typically to reach 'Good' (above 71) within 6–12 months.

The score is weighted based on your industry. A restaurant and a SaaS business are measured by different norms. A restaurant typically has higher DSO and lower margin — so expectations are adjusted. SaaS has higher margin but also higher CAC. Freja uses BrancheAdvisor with 10 Danish industry codes to adjust the calculation. It means that a score of 75 in the restaurant industry is as good as 80 in SaaS — the score is relative to industry benchmarks.

Freja shows you exactly what is dragging the score down and what to do. Example: 'To raise your score from 72 to 80: (1) Reduce DSO from 38 to 30 days — send automatic reminders day 7 after due date (+3 points). (2) Increase equity ratio from 38% to 42% — reduce short-term debt by DKK 50,000 (+2 points). (3) Add 12 missing documents — improve compliance score (+3 points).' Concrete actions, no guessing. Freja also follows up and shows trend over time.