We are thrilled to announce that Global International Relocation has achieved the highest score on the FAIM Credit Risk Barometer, following a rigorous financial assessment conducted by Ernst & Young (EY). This achievement is a testament to our company’s financial strength, stability, and commitment to excellence in the international relocation industry.
Understanding the FAIM Financial Assessment
The FAIM Financial Assessment was introduced in 2022 as an integral part of the FAIM Quality Standard. This assessment was implemented to ensure that FAIM-certified movers like us are not only operationally sound but also in good financial health. The FAIM standard is a globally recognized benchmark in the moving industry, and incorporating financial criteria further strengthens the trust and credibility of FAIM-certified companies.
Ernst & Young, a globally auditing firm, is responsible for conducting this financial assessment. The assessment focuses on three critical financial ratios:
- Solvency: This measures our ability to meet long-term financial obligations. It is assessed by the Debt/Equity Ratio, where a higher ratio indicates greater financial risk.
- Liquidity: This evaluates our capacity to handle short-term financial obligations, using the Operating Cash Flow Ratio as the primary indicator.
- Profitability: This determines our ability to generate earnings relative to our costs, measured by the Operating Profit Ratio.
These ratios are combined into a single value through the EY Credit Risk Barometer (CRB), which then classifies the credit risk of the company on a scale from 0% to 100%.
What Our Top FAIM Credit Risk Score Means
Global International Relocation’s top score on the FAIM Credit Risk Barometer signifies that we are classified as “Low Credit Risk.” This is the best possible outcome and reflects our strong financial standing. A “Low Credit Risk” classification means that we are fully compliant with the FAIM financial standards, demonstrating our ability to manage both long-term and short-term financial obligations effectively.