Check your
ZScore: How's your Fiscal Fitness?
This worksheet figures out the ZScore for
your company, which indicates financial health. From Your Financial Statement You'll put in:
 Earnings before taxes
 Total assets
 Net Sales
 Book
Value of Equity
 Total Liabilities
 Working Capital (Current
Assets minus Current Liabilities)
 Retained Earnings
The worksheet will indicate:
The shortterm potential for
financial problems at your company.
For more detail
explanations and the formula see our two worksheets:
Altman ZScore
Analysis  Background and The Altman ZScore Analysis
Please Note: If a firm's stock is not publicly traded, the (Market Value of Equity/Book Value of Debt) ratio cannot be calculated. To correct for this problem, the Z score can be
reestimated using book values of equity. Altman recommends the following alterations to the ratio weight factors.
Also Note:
The zscore represents a point in time. As such, the zscores should be
examined over time. Consistently low scores each year are more of a
concern than a one time low score.
KEY:
ZSCORE ABOVE 2.90YOU'RE IN GOOD SHAPE
ZSCORE BETWEEN 2.90 and 1.23WARNING SIGNS
ZSCORE BELOW 1.23BIG TROUBLECOULD BE HEADING TOWARD BANKRUPTCY
