Cash Flow Health Score

Your Business Has Vital Signs Too

A doctor doesn't diagnose your health from a single reading. They look at several indicators, weigh each one, and arrive at a complete picture. Your business finances work the same way. A healthy bank balance can mask a deteriorating receivables situation. Strong revenue can hide a payables pressure problem building quietly in the background. The Cash Flow Health Score looks at six dimensions of your financial position at once and combines them into a single weighted number: your score from 0 to 100.

The Six Components

Each component measures a specific dimension of financial health. Weights reflect how much each factor typically determines whether a small business runs into cash flow trouble.

• Cash Runway (30%): Months of operating expenses covered by your projected ending cash. Under one month is a crisis. Over six months is a cushion worth protecting.
• Cash Flow Trend (20%): Whether your projected cash position is rising or falling over the 13-week forecast horizon. A declining trajectory is a warning signal even when today’s balance looks fine.
• A/R Health (15%): The quality of your receivables by age. Current invoices score full credit; 90-plus day invoices score near zero. One large past-due account can move this component significantly.
• A/P Pressure (15%): Total open payables as a fraction of available cash. When what you owe approaches what you have, the risk to liquidity is measurable.
• Liquidity Buffer (10%): Weeks of average outflows covered by current cash. Fewer than two weeks of buffer means one large unexpected expense changes everything.
• Revenue Stability (10%): How consistent and directionally positive your recent monthly revenue has been. High volatility makes every other component harder to forecast.

FREM Knows What to Do About It

Every component in the breakdown includes a FREM insight: a plain-English action step calibrated to your specific score. Strong components get forward-looking suggestions like building a formal cash reserve or negotiating early-pay discounts with vendors. Watch-level scores get targeted tactics. Risk-level scores get direct calls to action.

FREM doesn't just tell you your score. It tells you the exact next step to protect your cash position.

The 30-Day Trend

The health score detail page shows a sparkline built from daily snapshots saved automatically each morning. As your data matures, the trend shows whether your overall financial health is improving, holding steady, or declining—a picture that a single point-in-time score can't provide on its own.

What You Can Ask FREM

• “What’s my cash flow health score?”
• “Why is my A/R health component low?”
• “How do I improve my cash runway?”
• “What’s pulling my score down the most?”
• “Is my financial health getting better or worse?”

How to Access It

The Cash Flow Health Score is live in your dashboard now. Look for the Health Score tab in the dashboard navigation bar, or the Cash Flow Health Score card between your Revenue Chart and FREM Intelligence preview. Click "View details" to open the full breakdown page with component scores, FREM insights, and your 30-day trend.

A QuickBooks connection is required to score the five cash-based components. Revenue Stability scores from your imported transaction history. Any missing component is excluded from the calculation and the remaining weights are renormalized automatically. See the Cash Flow Health Score feature page for the full breakdown.