Do you know how strong your business really is?

Capassa is now launching a simpler way to understand your company's financial strength.

You probably know what your business turned over last year. You may also know the result, how much money you have in the bank and whether you are ahead of or behind budget. But what if I asked you a slightly different question:

How financially strong is your business right now, from 0 to 10?

What would you answer? And more interestingly: what would your answer be based on?

That is precisely why we created Capassa Score.

One number never tells the whole story

A business can grow quickly while its liquidity steadily gets worse. It can make a profit while having a balance sheet that leaves it vulnerable. It can have money in the bank today while the development in margins or costs is pointing in the wrong direction. Two companies with the same result can therefore be in completely different financial positions. That is one of the problems with assessing a business through individual key figures.

You need to see the connection. Capassa Score is made for precisely that. It analyses the company's financial development and brings together several aspects of its financial situation in one score from 0 to 10. Not to replace the figures, but to make them easier to understand.

The interesting thing is not the number

I will admit something: when someone tests Capassa Score for the first time, of course it is the number they want to see.

7.8.

Good?

Bad?

Better than expected?

But I do not really think the number is the most interesting thing. The interesting thing is the question that comes afterwards:

• Why?
• What pulls the score up?
• What pulls it down?
• Has the business become stronger or weaker?
• And is there something in the figures you should act on?

A score has little value if it only tells you that something is good or bad. It becomes interesting when it helps you understand what lies behind it.

You do not have to be an economist to understand your business

This is a question I have been concerned with since we started Capassa. Far too much financial information is made by economists, for economists. As a leader, you should not have to open five reports, compare 20 key figures and build an Excel sheet to understand whether the business is moving in the right direction. You should be able to start with a much simpler question:

How are things really going?

And then go deeper if something deserves your attention. That is how we think about Capassa Score. The score should not make the decision for you. It should help you know where to start asking questions.

A good score does not mean you can lean back

This may be the most important part. A high Capassa Score does not mean everything is perfect. And a lower score does not necessarily mean the business is bad. A company investing heavily in growth may look different from a mature company with stable earnings. A rapid change can matter more than the level itself. And figures must always be understood in the context of what the business is trying to achieve. That is why I do not believe financial management should be reduced to one number.

The point of the score is to find out which figures you should look at more closely. Not to replace them with one.

So what is your Capassa Score?

The good thing is that you do not have to wonder. We have now made it possible to test Capassa Score for free. You connect the company to Capassa, and we analyse the accounting figures and calculate the score. You can then see the company's financial position and what lies behind the assessment. No Excel sheets. No economics exam, just your own figures. And I should warn you about one thing:

Once you know the score, you will probably want to know why.

Test Capassa Score for free

How strong is your business, from 0 to 10?