Z-Score Business Health Calculator
Introduction
The Altman Z-Score is a bankruptcy prediction model developed by Dr. Edward I. Altman of New York's University in the mid-1960's. The model assigns a coefficient to five financial ratios, the numerical values of which are added together to arrive at the Z-Score
The score is then compared to the scale below as an analytical tool to predict the probability of a company going bankrupt.
If you have a business and you are you experiencing financial difficulties and want to know what shape your business is in we highly recommend you use the Z-Score calculator to give you an indication of the health of a business. This calculator should be used over a number of periods to get a more accurate picture.
How to use this calculator
The balance sheet from your latest financial statement holds the numbers you'll need to calculate your company's Z-Score.
Find the entries for total assets, earnings before interest & tax (EBIT), net sales, market value of equity, total liabilities, working capital and retained earnings.
- Fill in your Total Assets
- Fill in your Earnings before Interest & Tax (EBIT)
- Fill in your Net Sales
- Fill in your Market Value of Equity
- Fill in your Total Liabilities
- Fill in your Working Capital
- Fill in your Retained Earnings
Should you have any queries regarding your company's finances - The UK Insolvency Helpline has a very effective, workable and legal answer - call us now on:
