Z-Score Help

This calculator uses the following formula:

Z-Score = 1.2 * X₁ + 1.4 * X₂ + 3.3 * X₃ + 0.6 * X₄ + 0.999 * X₅

• X₁ = Working Capital / Total Assets
• X₂ = Retained Earnings / Total Assets
• X₃ = Earnings before Interest and Taxes / Total Assets
• X₄ = Market Value of Equity / Book Value of Debt
• X₅ = Sales / Total Assets

Edward Altman came up with the Altman Z-Score to create a statistical technique to predict the probability of a company's financial failure.