Creditinfo has completed a detailed analysis, which displays Icelandic companies that have achieved top marks in its strength and stability assessments. Only about 2% of companies registered in the Icelandic Company Directory (2018) pass the conditions set by Creditinfo in order to receive the award of being one of “Iceland’s Strongest Companies”.
Creditinfo’s conditions for the company strength analysis:
- Confirmed financial statements for three straight years with the Directorate of Internal Revenue
- Less than 0.5% probability of defaulting debts according to Creditinfo’s Risk Assessment
- Positive operating profit (EBIT) for three straight years
- Positive operating net profit for three straight years
- Total assets exceed ISK 80 million for three straight years
- Equity ratio has been 20% or higher for three straight years
- CEO is listed in the national Registry of Enterprises
- The company is active according to Creditinfo’s definition
Certification such as this is widely recognized in countries around the world, but in larger economies the conditions for the awards are not as strict as those in Iceland.
Creditinfo believes that in smaller economies it is more important to assess a company’s strength through the stability of its operation performance over time, as opposed to only one fiscal year. This long-term assessment prevents the inclusion of companies that cannot withstand market fluctuations, such as was the case in the 2008 economic collapse.
VR, the Commercial and Office Workers’ Union, conducts an employee satisfaction survey annually. The companies ranked in the top 10 places in the survey, within their size segment, get to use the “VR Model Firm” logo.