CLEARVIEW FINANCIALScoring rubrics
Every score can be checked.
A Deep Dive scores a company in four areas, each out of 10: Operations, Liquidity, Solvency and Qualitative. The total is out of 40. The thresholds are fixed and published here, so anyone can recalculate a score from a company’s own numbers.
How to read a score. A higher or lower score is a point of comparison between companies, not a statement that one is better than another. Scores are only comparable between companies scored on the same rubric, so a bank’s 30 and a retailer’s 30 are not equivalent. The total is not a rating and carries no buy, hold or sell bands.
The rubrics
Choose the rubric for the company’s sector| Rubric | Applies to | Status | Read |
|---|---|---|---|
| General | Non-financial listed companies (JSE and international) | Published | Web page PDF |
| Property | JSE-listed property companies and REITs | Draft v0.95 | Web page PDF |
| Insurance | JSE-listed life, short-term and composite insurers | Draft v0.95 | Web page PDF |
| Banking | JSE-listed banks and banking groups | Draft v0.95 | Web page PDF |
Why there is more than one rubric
Property companies, insurers and banks are funded and regulated very differently from a retailer or a manufacturer. Each sector rubric keeps the same four areas but uses measures that suit that kind of company, such as loan-to-value for property and the CET1 ratio for banks.
What “draft” means
The sector rubrics were tested on three companies in each sector and revised (version 0.95). Their thresholds stay open to change until more companies have been scored. Once a rubric is published, its thresholds are reviewed at most once a year, and any change is dated and noted.
Missing data
If one year of a figure is unavailable it is kept and flagged. If two or more years are unavailable, the affected line is excluded and noted. Items that cannot yet be confirmed are shown as pending and score zero until confirmed.