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
 Market 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: The (Sales/Total Assets) ratio is believed to vary significantly by industry. It is likely to be higher for merchandising and service firms than for manufacturers,
since the former are typically less capital intensive. Consequently, nonmanufacturers would have significantly higher asset turnover and Z scores. The model is thus likely to under predict certain sorts of bankruptcy. To correct for this potential defect,
Altman recommends that the (Sales/Total Assets) ratio be eliminated with corresponding changes in the remaining ratios.
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
