Altman Zscore (AZ) Calculator

Altman Z-Score predictor for company bankruptcy risk. Enter sales, EBIT, assets, and financials to get a probability of recovery or bankruptcy.

Formula

1.2 * $2900 / $3800 + 1.4 * $7600 / $5800 + 3.3 * $1700 / $6800 + 0.6 * $16400 / $6400 + 1 * $15800 / $18200 = 5.9809. The result of 5.9809 indicates that XYZ Corporation is at a high risk level according to the Altman z-score model, suggesting potential financial distress or instability in its operations.

Meaning

The Altman Z-score, also known as the Altman Z-test, is a statistical method used to predict a company's likelihood of going bankrupt. It provides an objective measure of a firm's financial health and is often used by investors, creditors, and other stakeholders to assess the risk of default or bankruptcy.