Transparency Report
How We Score Your Financial Health
The AI-powered methodology behind Horizon's Health Score — documented openly so you know exactly how your financial data gets evaluated.
Two-Path Scoring System
Reliable analysis with a built-in safety net
Every Health Score is generated through a two-path system designed for accuracy and reliability:
AI-Driven Analysis
Your KPIs are evaluated by an expert AI financial analyst that specializes in your specific business type. It scores your metrics against real industry benchmarks and returns a comprehensive assessment.
Deterministic Fallback
If the AI response is unavailable, a rules-based system kicks in. It evaluates your core financial metrics using transparent, fixed rules to produce a consistent score.
Industry-Specific Evaluation
Tailored analysis for 9 business types
Different businesses have different definitions of "healthy." A SaaS company's key metrics look nothing like a real estate project's. That's why the AI analyst is given industry-specific context, benchmarks, and focus areas for each model type:
The specific KPIs collected, benchmark ranges, and focus areas for each business type are detailed in the full methodology report available to Premium members.
What the AI Evaluates
A comprehensive financial assessment
The AI analyst doesn't just produce a number. It delivers a structured report covering multiple dimensions of your financial health:
- Health Score — A number from 1 to 100
- Health Label — Plain-language rating of your financial position
- Key Strengths — Where your model is performing well
- Areas of Concern — Metrics that need attention, with severity levels
- Action Items — Prioritized recommendations with timeframes
- Benchmark Comparisons — Your values vs. industry standards
- Forecast Outlook — Forward-looking assessment with risks and opportunities
- Data Audit Warnings — Flags for inputs that look unusual
Score Scale
How the 1–100 score maps to health labels
| Score Range | Label |
|---|---|
| 80–100 | Excellent |
| 60–79 | Good |
| 40–59 | Fair |
| 20–39 | Needs Attention |
| 1–19 | Critical |
Automatic Data Auditing
Built-in sanity checks on your inputs
After the AI generates its analysis, the system runs an independent data audit. It compares your key metrics against typical industry ranges for your business type. If any value looks unusual, a warning is added to your report with a suggestion to review the relevant inputs.
This helps catch data entry errors and ensures your score reflects your actual business, not a typo.
The exact benchmark ranges, tolerance thresholds, and specific metrics audited are documented in the full methodology report for Premium members.
Industry Benchmarks
Calibrated ranges for every business type
The scoring system uses industry-calibrated benchmark ranges across four key financial dimensions for each of the 8 supported business types:
The specific ranges for each business type (e.g., SaaS gross margin targets vs. e-commerce targets) are available in the full Premium methodology report.
Fallback Scoring
A transparent safety net
When the AI analyst is unavailable, the system falls back to a deterministic scoring method. It starts at a neutral baseline and adjusts based on your core financial metrics — runway, revenue, unit economics, and margins.
The result is always a score between 1 and 100, using the same health labels as the AI-driven path.
The exact rules, point values, and conditions used in the fallback system are documented in the full methodology report for Premium members.
Download the Complete Methodology Report
Get the full PDF with exact benchmark ranges for all 9 business types, detailed KPI lists, fallback scoring rules, data audit thresholds, and AI prompt templates.
