I always assumed it was based on the total score - each member's score added together. Then the rank would just be the order it comes in compared to the other squads in the game.
It's the total of points scored by all members while in the squad. Some fleets used to do shenanigans with rotating members in and out to maximize points while in the squad, especially during galaxy events.
Boomer418
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Proud Former Officer of The Gluten Empire
Retired 12-14-20. So long, and thanks for all the cat pics!