Clime Quality Rating (CQR)

The Clime Quality Rating is a quantitative analysis tool designed to give investors clear insight into the financial health of companies. The CQR is used by Clime’s investment management team as one of the filters applied prior to making investment decisions.

The CQR focuses on analysing information from a company’s audited financial accounts.

Clime use a number of specific financial metrics (notably cashflow, profitability & earnings manipulation) to derive a total of 45 ratios, calculated twice a year after each earnings season, to look at the performance and solvency of the business and determine the CQR.

The CQR is built on 70 elements of financial data taken from a company’s accounts. It has been designed to separate the strong from the weak, on the quality of their financial fundamentals at a point in time and over time.

Each company has a unique CQR. Within Clime Direct, Clime’s stock valuation and research platform, CQR’s are displayed as a star rating.

When looking for quality companies we focus on finding businesses that can self-fund and create value without excessive leverage.

The CQR is suitable for operating businesses that make money in making, selling or providing a product or service for customers.

The CQR is not appropriate for businesses that make money in the business of money such as banks, finance companies and insurance businesses.

Interested in identifying the CQR for your stock of interest?

The current as well as past CQR is available to the public via Clime Direct. A stock’s current CQR is displayed as a 0 to 5 star rating on the company valuation screen. We encourage investors to shop for companies as they would hotels, the more stars the better! Alternatively, a company’s current as well as past CQR appears as a percentage in the Ratios dashboard.

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Clime Direct is an online stock valuation & research platform which provides you with research to help you determine the value of listed companies. Not only will you have the valuations, you will also gain access to our analysts’ commentaries and company insights to accompany those valuations to help you make smarter investment decisions.

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The information provided on this webpage and the rest of clime.com.au is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein. Please consider our Information Memorandum, Product Disclosure Statement and Financial Services Guide before investing in one of our products. Past performance is no guarantee of future returns.
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