Question: What is the D&B® Viability Rating?
Answer: The D&B Viability Rating holistically evaluates a company's current and future health and forecasts what the next year may look like. This is done by using predictive risk indicators to indicate the likelihood that a business may fail, become inactive, or file for bankruptcy protection in the following 12 months. The D&B Viability Rating can be used to supplement the Financial Stress Score in evaluating the likelihood of a company going out of business or becoming inoperable and contains both predictive and descriptive components. Other businesses might look at your D&B Viability Rating to help determine the likelihood of your business remaining operational over the next 12 months.
How is my D&B Viability Rating calculated?
The D&B Viability Rating is made up of four components: Viability Score, Portfolio Comparison, Data Depth Indicator, and Company Profile.
The Viability Score ranges from 1 to 9 and measures the probability of the company going out of business or becoming inactive over the next 12 months as compared to other businesses in the Dun & Bradstreet Data Cloud.
The Portfolio Comparison Score ranges from 1 to 9 and assesses a company’s viability compared to similar businesses within the same industry. Portfolio Comparison Scores are determined by the presence of financial statement data, the amount of payment experiences on file, and firmographic data.
The Data Depth Indicator ranges from A to M and indicates the level of predictive data available in the Dun & Bradstreet Data Cloud on a business that is used to score its viability. The Data Depth Indicator is determined by the presence or absence of complete firmographics, the extent of commercial trading activity, and any financial attributes present in the business credit file.
The Company Profile ranges from A to Z and examines how established a company may be based on a combination of categories including financial data, trade payments, and demographic data, including number of employees, total sales, and age of the business.
What can I do to help ensure that my D&B Viability Rating accurately represents my business?
You can help ensure the accuracy of your D&B Viability Rating by confirming that your financial statement data, public record data, and demographic information are up to date and that all relevant payment experiences appear on your business credit file.