Jaxworks.com: Z-Score Analysis Calculation-Private

Bankruptcy Calculator:

Z-Score If Privately Held Firm
NOTE: Dr. Altman occasionally updates his Z-Score formulae.
We suggest checking his site routinely: Click Here

Check your Z-Score: How's your Fiscal Fitness?
This worksheet figures out the Z-Score 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 short-term potential for financial problems at your company.

For more detail explanations and the formula see our two worksheets:
Altman Z-Score Analysis - Background and The Altman Z-Score 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 re-estimated using book values of equity. Altman recommends the following alterations to the ratio weight factors.

Also Note: The z-score represents a point in time. As such, the z-scores should be examined over time. Consistently low scores each year are more of a concern than a one time low score.

We have preloaded some numbers for you. Click on Calculate Z-score to see the results. Then come back here and enter your numbers.

RATIO	FORMULA	WEIGHT FACTOR	WEIGHTED RATIO

Return on Total Assets	Earnings Before Interest and Taxes Total Assets	x 3.107	---
Sales to Total Assets	Net Sales Total Assets	x 0.998	---

Equity to Debt	Book Value of Equity Total Liabilities	x 0.420	---

Working Capital to Total Assets	Working Capital Total Assets	x .717	---
Retained Earnings to Total Assets	Retained Earnings Total Assets	x .847	---

KEY:

Z-SCORE ABOVE 2.90--YOU'RE IN GOOD SHAPE

Z-SCORE BETWEEN 2.90 and 1.23--WARNING SIGNS

Z-SCORE BELOW 1.23--BIG TROUBLE--COULD BE HEADING TOWARD BANKRUPTCY