What Is an Altman Z-Score?
The Altman Z-Score is used for evaluating the financial performance of all types of businesses and can be used for predicting the bankruptcy and credit risk of any company. The score is measured on the basis of five different ratios along with their weights calculated from company data.
How Do I Calculate an Altman Z-Score?
To use the financial assessment calculator, reach out to your TMC, request the required numbers, and then input the information to calculate the score.
What Do Scores Mean?
Scores below 1.8 indicate a chance of bankruptcy.
Scores between 1.8 and 2.7 indicate a probability of bankruptcy within two operating years.
Scores between 2.7 and 2.99 indicate a company is stable financially.
Scores over 3 indicate a healthy financial status.