Altman Z-Score
The Altman Z-score is the output of a credit-strength test that gauges a publicly traded manufacturing company's likelihood of bankruptcy. The Altman Z-score is based on five financial ratios that can be calculated from data found on a company's annual report. It uses profitability, leverage, liquidity, solvency and activity to predict whether a company has a high degree of probability of being insolvent.
Altman Z-Scores and the Financial Crisis
In 2007, the credit ratings of specific asset-related securities had been rated higher than they should have been. The Altman Z-score indicated that the companies' risks were increasing significantly and may have been heading for bankruptcy.
Altman calculated that the median Altman Z-score …show more content…
Working Capital Total Assets Retained Earnings EBIT Market Price of Share Outstanding Shares MV Equity Total External Liabilities Sales
Year WC TA RE EBIT MPS Shares MVE TL S
2016 -6666.5 123,208.15 69,505.31 7,586.79 319.7 971215439 310497575848.30 50,456.43 42,290.64
2015 -4774.62 115,677.12 65,692.48 10,484.84 316.75 971215439 307632490303.25 46,738.23 46,226.08
2014 -7317.18 111,040.41 60,176.58 11,534.08 393.95 971215405 382610308799.75 47,617.42 45,869.55
2013 -4958.05 101,876.93 54,238.27 9,713.37 312.85 971215229 303844684392.65 44,392.25 41,843.27
2012 -4039.14 96,191.06 51,649.95 11,782.77 453.1 971214450 440057267295.00 41,294.70 36,687.13
2011 5017.13 89,551.72 45,807.02 11,512.55 612.9 971214450 595257336405.00 117,562.92 31,579.29
Year WC/TA RE/TA EBIT/TA MVE/TL S/TA Z-Score Interpretation
2016 -0.05411 0.564129 0.061577 6153776 0.343245 3692267 No Default
2015 -0.04128 0.567895 0.090639 6582031 0.399613 3949220 No Default
2014 -0.0659 0.541934 0.103873 8035091 0.413089 4821056 No
The Altman Z-score is the output of a credit-strength test that gauges a publicly traded manufacturing company's likelihood of bankruptcy. The Altman Z-score is based on five financial ratios that can be calculated from data found on a company's annual report. It uses profitability, leverage, liquidity, solvency and activity to predict whether a company has a high degree of probability of being insolvent.
Altman Z-Scores and the Financial Crisis
In 2007, the credit ratings of specific asset-related securities had been rated higher than they should have been. The Altman Z-score indicated that the companies' risks were increasing significantly and may have been heading for bankruptcy.
Altman calculated that the median Altman Z-score …show more content…
Working Capital Total Assets Retained Earnings EBIT Market Price of Share Outstanding Shares MV Equity Total External Liabilities Sales
Year WC TA RE EBIT MPS Shares MVE TL S
2016 -6666.5 123,208.15 69,505.31 7,586.79 319.7 971215439 310497575848.30 50,456.43 42,290.64
2015 -4774.62 115,677.12 65,692.48 10,484.84 316.75 971215439 307632490303.25 46,738.23 46,226.08
2014 -7317.18 111,040.41 60,176.58 11,534.08 393.95 971215405 382610308799.75 47,617.42 45,869.55
2013 -4958.05 101,876.93 54,238.27 9,713.37 312.85 971215229 303844684392.65 44,392.25 41,843.27
2012 -4039.14 96,191.06 51,649.95 11,782.77 453.1 971214450 440057267295.00 41,294.70 36,687.13
2011 5017.13 89,551.72 45,807.02 11,512.55 612.9 971214450 595257336405.00 117,562.92 31,579.29
Year WC/TA RE/TA EBIT/TA MVE/TL S/TA Z-Score Interpretation
2016 -0.05411 0.564129 0.061577 6153776 0.343245 3692267 No Default
2015 -0.04128 0.567895 0.090639 6582031 0.399613 3949220 No Default
2014 -0.0659 0.541934 0.103873 8035091 0.413089 4821056 No