Calculate bankruptcy risk and assess financial distress using the proven Altman Z Score model for credit analysis and investment decisions.
Evaluate corporate financial health and predict bankruptcy risk using Edward Altman's Z Score model. This widely-used formula analyzes five key financial ratios to assess creditworthiness and investment risk.
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A financially stable company with strong ratios and low bankruptcy risk.
Working Capital: 800,0 B $
Total Assets: 3,0 Mn $
Retained Earnings: 600,0 B $
EBIT: 400,0 B $
Market Value of Equity: 2,5 Mn $
Total Liabilities: 500,0 B $
Sales: 5,0 Mn $
A company showing signs of financial distress with concerning ratios.
Working Capital: 100,0 B $
Total Assets: 2,0 Mn $
Retained Earnings: -$200.000
EBIT: 50,0 B $
Market Value of Equity: 300,0 B $
Total Liabilities: 1,7 Mn $
Sales: 1,5 Mn $
A typical manufacturing company with moderate financial health.
Working Capital: 400,0 B $
Total Assets: 2,5 Mn $
Retained Earnings: 300,0 B $
EBIT: 200,0 B $
Market Value of Equity: 1,2 Mn $
Total Liabilities: 1,0 Mn $
Sales: 3,5 Mn $
A new company with limited financial history and higher risk profile.
Working Capital: 200,0 B $
Total Assets: 800,0 B $
Retained Earnings: -$100.000
EBIT: 30,0 B $
Market Value of Equity: 500,0 B $
Total Liabilities: 300,0 B $
Sales: 600,0 B $