Z-score is also known as the standard score. The statistical formula for a value's z-score is calculated using the following formula: Where: Calculating a z-score requires that you first determine ...

The Altman Z-score is a formula for determining whether a company is headed for bankruptcy. The formula takes into account profitability, leverage, liquidity, solvency, and activity ratios.

The Altman Z-score, as defined by Wikipedia, is: The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at ...