Add to Onlywire
 TRY SwingTracker FREE for 4 Weeks NOW
(incl. Real-Time E-Mini Futures & Stock Charts & Real-Time SCANNING
Intraday, Daily, Weekly & Monthly Interactive Charts
and Real-Time Quotes and Option Chains)
www.vss2000.com

Partner
Stock Terms


Popular Trading Software Links

How To Get Real-Time Quotes, Charts, And Scanning At Half The Price The Leading Data Providers Charge

Top Professional Trading Scans Revealed

Get The Right Software To
Begin Trading Like A Pro

Traders Wanted - Play $50,000 Stock Trading Game

Looking for Day Trading Coaching? - Learn the Secrets to Trading Success and simplify your trading. Free coaching session.

Visit my profile on FeedTheBull.com
Home   Back to resources
Z-score
Edward Altman developed a Z-score model based on five financial ratios to predict whether a company will go into bankrupt or not. Altman’s Z-score model is:
Z = 0.012 A + 0.014 B + 0.033 C + 0.006 D + 0.999 E.
Where:
A = net working capital / total assets
B = retained earning / total assets
C = earning before interest and taxes / total assets
D = market value of equity / book value of total liability
E = sales / total assets
Z = Z-score
If Z-score > 2.99, Z-score predict that the company will not fail within one year. Z-score between 1.81 and 2.99 is in gray area, which is difficult to predict. If Z-score < 1.81, Z-score predict that the company will fail within one year.



Did not find what you are looking for? Try this google search.
Google