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GRADE LAB

Grade lab

Move the sliders for nine financial metrics and watch each value become a 0 to 100 score, pass through three areas and fold into an S to D grade, using the same curves and weights as the real grades.

Move metrics, build a grade

Not a real company
A tool for seeing how the grade is calculated
Learning path step 3 / 40

Earnings

Weight 40%Area score55
Higher is better8%Band 5% to 10%55
Higher is better8%Band 5% to 10%55
Higher is better4%Band 0% to 5%55

Financial health

Weight 35%Area score52.6
Lower is better110%Band 100% to 150%50
Higher is better130%Band 120% to 160%51.3
Higher is better5xBand 3x to 6x56.7

Dividends

Weight 25%Area score70.6
Higher is better2%Band 1% to 2.5%55
Best within a range (35%)35%Band 0% to 35%100
Higher is better5 yrsBand 3 yrs to 6 yrs56.7
B
58 points / 100Middle band
  • Earnings55 × 40%22.0
  • Financial health52.6 × 35%18.4
  • Dividends70.6 × 25%17.6

With these values the overall score is 58, grade B. Of the three areas, dividends is highest and financial health is lowest.

The overall score is rounded down. 84.6 is shown as 84 (A).

Fill with a fictional example

On the learning path

Values between two reference points are scored on the straight line joining them, and values beyond either end are held at the top or bottom score. Only the payout ratio is scored within a range: 100 points at 35%, falling 100 points for every 40 percentage points away from it and stopping at 10 points. The full criteria are published in How grades are calculated. This lab uses no real company. It is an educational tool for seeing how Jupick turns financial metrics into a grade. It does not forecast future prices or returns and does not suggest trading any stock. The scoring curves the sliders use (the reference lines that turn a value into a 0 to 100 score) and the area weights of 40, 35 and 25 are exactly the values used for the real grades. You can check your understanding with the grade guessing game, compare two companies in Two companies side by side, and see where these metrics come from in Inside the financial statements.