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

This paper proposes the Economic and Financial Health Index (EFHI), a composite indicator designed to capture the multidimensional performance of leading digital platforms. Building on firm-level financial statement data, the EFHI integrates four pillars—financial stability, profitability and operational efficiency, cash-flow and investment management, and employee productivity—aggregated through the non-compensatory Mazziotta–Pareto method. This approach limits offsetting effects among dimensions and provides absolute, benchmark-free scores. Applying the EFHI to Apple, Microsoft, Alphabet, Meta, Amazon, Netflix, Spotify, and Twitter over 2013–2021 reveals systematic differences between established, diversified platforms and growing firms with thinner margins and higher volatility. Apple, Microsoft, and Alphabet consistently record above-average and stable scores; Meta remains strong yet more exposed to advertising dependence; Amazon’s dynamics reflect scale and cost pressures; Netflix improves after a mid-period dip; Spotify and Twitter show structurally lower values. The EFHI offers actionable insights for managers, investors, and policymakers, supporting comparative assessment, monitoring over time, and targeted policies that foster innovation, diversification, and financial resilience in platform ecosystems.