Why are financial and holding companies scored differently?
Using MaegimLast updated
Because banks, brokerages, insurers, and holding companies have profit structures and financial statements fundamentally different from ordinary manufacturing or service companies. A financial company's "revenue" does not mean what it means elsewhere, and ratios like debt-to-equity or the current ratio are poor comparison metrics for businesses whose deposits and insurance obligations are booked as liabilities by nature.
Maegim therefore scores financial and holding companies with a reduced indicator set that excludes revenue-based metrics (operating margin, revenue growth, current ratio, debt ratio). Rather than forcing a common yardstick and producing distorted grades, only the indicators that fit the industry are used — and the stock's page states that the reduced set applies.
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