Altman Z-Score Calculator
Calculate the original Altman Z-Score for a publicly traded manufacturing company.
How to Use the Altman Z-Score Calculator
Enter working capital, retained earnings, EBIT, market value of equity, sales, total assets and total liabilities using figures from the same reporting period. The calculator applies the original Altman Z-Score model for publicly traded manufacturing companies.
Practical Example
If a company has WC/TA of 0.20, RE/TA of 0.30, EBIT/TA of 0.12, MVE/TL of 1.50 and Sales/TA of 1.20, its Z-Score is about 3.12, which falls in the traditional safe-zone range of the original model.
Factors That Affect the Result
The score depends on accounting quality, market equity value, leverage, profitability and asset efficiency. Industry structure and company type also matter because alternative Altman models are used for some private and non-manufacturing firms.
Frequently Asked Questions
What does a higher Altman Z-Score mean?
Under the original model, a higher score generally indicates lower measured financial-distress risk.
Does a low Z-Score guarantee bankruptcy?
No. It is a screening model, not a certain prediction of bankruptcy.
Can this version be used for every company?
No. This calculator implements the original model designed for publicly traded manufacturing firms.
Interpreting an Altman Z-Score
The Altman Z-Score combines several accounting ratios into a statistical distress indicator. Different model variants exist for different company types, and the score should not be treated as a certain bankruptcy prediction. Current liquidity, industry conditions and data quality provide important context.