The Grading Report: How grades are calculated

The Grading Report: How grades are calculated

Info
This article is intended for instructors.

To use Praxar's Grading report, see this article here.

The platform supports two grading methods for performance metrics. The Ranking method is selected by default.

Ranking (Default)

Grades are assigned based on each company's rank within the group. Companies with equal or very similar metric values receive the same rank, and the next rank follows immediately without a gap.

The top-ranked company receives 100%, the last receives the minimum score, and all intermediate ranks are evenly spaced. The actual difference between metric values does not affect the grade distribution. 

To avoid insignificant differences affecting rankings, metric values that fall within a predefined tolerance range are grouped into the same rank. For example, in the Share Value metric, companies with values within $1 of each other receive the same rank. 

Min-Max

Grades are distributed based on actual metric value differences within the group. The highest value receives 100% and the lowest receives the minimum score, with all other results distributed proportionally in between.

Because this method depends on the spread of results within the group, exceptionally strong or weak companies can significantly influence the grade distribution.

Idea
Pedagogical note: This method is designed to reflect relative performance within a competitive environment, similar to real-world business contexts. It ensures results are evaluated based on outcomes and decision quality in comparison to peers, rather than in isolation. 

Note that a higher value does not always translate to a high percentage score. If performance across companies is closely clustered or significantly below the top performer, the resulting percentage may still be moderate. 

Summary

Method

Based on

Value Gaps Matter?

Ranking (Default)

Rank within the group

No

Min-Max

Actual metric value differences

Yes



Calculating Grades

The platform follows three steps to produce a final grade. Step 1 differs depending on the grading method selected.

Step 1: Convert to Percentage

Ranking: The percentage is derived directly from each company's rank within the group. The minimum score is factored into this calculation, so no separate adjustment is needed. The top-ranked company receives 100%, the last receives the minimum score, and all intermediate ranks are evenly spaced.

Min-Max: Values are normalized between the group minimum and maximum, then the minimum score is applied as a floor.

NotesMin-Max Example: Number of Employees metric in Praxar Kayak:
  • Company A: 16 employees
  • Group minimum: 5
  • Group maximum: 20

((16 − 5) / (20 − 5)) × 100 = 73%

If the Minimum Score is set to 75%, this result is adjusted up to 75%.

Step 2: Apply Weight

Each field's percentage score is multiplied by its assigned weight.

Step 3: Calculate the Final Grade

The final grade is the sum of all weighted values across the selected metrics.

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