Z-Score Calculator
From Company's Financial Statements:
Working Capital =
Total Assets =
Retained Earnings =
Operating Income =
Market Capitalization =
Total Debt =
Total Sales =
Summary/Analysis:
Z-Score: =
Company Outlook: =
Help
Z-Score is a reliable formula used for evaluating a company's financial health and predicting corporate failure with a 70% accuracy up to two years before collapse.
Variables:
- Working Capital
- Total Assets
- Retained Earnings
- Operating Income
- Market Capitalization
- Total Debt (Book Value of Total Debt)
- Total Sales
Formula:
ZScore=1.2*(WorkCapital/TotalAssets)+1.4*(RetEarnings/TotalAssets)+3.3*(OpIncome/TotalAssets)+0.6*(MarketCap/TotalDebt)+(Sales/TotalAssets)
Rating:
>3.0: Company in top financial health.
2.7~2.99: Minor financial difficulties
1.8~2.69: Without radical intervention, the company will go bankrupt within 2 years.
<1.79: Company in serious and immediate financial difficulties.
Source:
Altman, Edward; Business Professor New York University. 1968
Contributed by: Víctor H. Nuila
Keywords
Working Capital
Total Assets
Retained Earnings
Operating Income
Market Capitalization
Total Debt
Total Sales
Z-Score:
Company Outlook:
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