Sunday, July 17, 2011

Non-manufacturing z-score calculator

Sites like Sharelock Holmes typically publish the Altman z-score, assuming the company to be a manufacturer. However, many companies are not manufacturers, so his less-common, but more applicable, calculation is required. I am a programming geek who likes tinkering with "cool" languages like (Racket) Scheme.

I have combined these two interests together to create "fiqua", a fledgling company account analyser. Currently, it performs only one calculation: the Altman z-score for non-manufacturers. I plan to add more functionality. The calculator can be downloaded here. The program is free, and contains no spy- or ad- ware. Simply download the file, unzip it, and click on the executable file. Let me know if you have any problems.

The first company I tried it on was TCG.L (Thomas Cook), which is on my watch list - deathwatch list, that is. It looks pretty poorly to the naked eye, but the z-score confirms the bad news. My program calculates it as -1.2, well into the danger zone. Here are the specific numbers I pulled from Digital Look:
Total Assets: 6900
Total Liabilities: 5157
Working Capital: -1922 (Current Assets 1463 - Current Liabilities 3385)
Retained Earnings: -626
EBIT: 167
Mkt Cap: 624

Enjoy!

4 comments:

Anonymous said...

When I try to open fiqua.exe my PC gives an error sound and nothing else happens.

MrContrarian

Mark Carter said...

Drats and darn, MrContrarian. Thanks for pointing it out. I will investigate.

Mark Carter said...

MrContrarian,

What Operating System are you using? Windows XP, or 7?

Also, did you run fiqua.exe from its original location, or did you move it?

Mark Carter said...

UPDATE: Computational bug fixed. Note that the software only works on Windows 7, not 98, XP or Vista. Sorry about that.