A COMPOSITE INDICATOR TO MEASURE THE ECONOMIC AND FINANCIAL HEALTH OF DIGITAL PLATFORMS

This study develops a Composite Indicator, the Economic and Financial Health Index (EFHI), to assess the multidimensional performance of major digital platforms. Traditional financial metrics—such as revenues, operating margins, or cash flows—fail to capture the structural complexity of these ecosystems, which generate value through technological innovation, user interaction, and data management. The EFHI integrates four key dimensions—financial stability, profitability and operational efficiency, cash flow and investment management, and employee productivity—using the Mazziotta–Pareto (MP) method, a non-compensatory aggregation technique that penalises unbalanced performance across dimensions. Applying the EFHI to leading global platforms (Apple, Microsoft, Alphabet, Meta, Amazon, Netflix, Spotify, and Twitter) over the 2013–2021 period reveals clear distinctions between established and emerging firms. The results show that Apple, Microsoft, and Alphabet exhibit the highest and most stable EFHI values, reflecting diversified and resilient business models. In contrast, Netflix, Spotify, and Twitter display greater volatility, highlighting the operational fragility and high cost structures typical of growing digital firms. The findings provide strategic insights for managers, investors, and policymakers, emphasising the need for differentiated policy approaches to support innovation, diversification, and sustainable growth in the digital economy.