Altman Z-Score
A predictive model created by Edward Altman in the
1960s. This model combines five different financial ratios to determine
the likelihood of bankruptcy amongst companies.
Generally speaking, the lower the score, the
higher the odds of bankruptcy. Companies with Z-Scores above 3 are
considered to be healthy and, therefore, unlikely to enter bankruptcy.
Scores in between 1.8 and 3 lie in a grey area.
This is a relatively accurate model -- real world application of the
Z-Score successfully predicted 72% of corporate bankruptcies two years
prior to these companies filing for Chapter 7.
Free
Z-Score
Request the Form below and fill out the required
financials. At this time the spreadsheet will automatically calculate your
Z-Score on the second worksheet. The same Form can now also be used to
order the Online Business Physical or the Online Business Physical with
Valuation. If you would like to receive not only the Free Z-Score but
also a free Business Physical Report click
here.
