The Altman Z-score is an essential financial tool for evaluating a company’s bankruptcy risk, a key indicator of financial health developed by Professor Edward Altman in the 1960s. This predictive model assists investors, analysts, and business owners in gauging a company’s financial stability using a simple formula that includes working capital, retained earnings, and total assets. With its easy-to-apply nature, the Altman Z-score is widely used to assess public and private company risks and identify early warning signals for financial distress.
The Altman Z-score is an essential financial tool for evaluating a company’s bankruptcy risk, a
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