Z Score Altman Z Score - The Insolvency Predictor - Credit Guru
In the early 60's Edward Altman, using Multiple Discriminant Analysis combined a set of 5 financial ratios to come up with the Altman Z-Score. This score uses statistical techniques to predict a company's probability of failure using the following 8 variables from a company's financial statements:
The ones in Green are from the Income Statement and the ones in Red from the Balance Sheet
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