Welcome to Newtum's Altman Z-Score Calculator, a tool designed to provide a quick and accurate assessment of your business's financial health. With a focus on Altman Z-Score calculation, we aim to offer a simple and efficient way to analyze and understand your financial risk. Curious? Dive in to learn more!
The Altman Z-Score Calculator is an innovative tool that offers instant calculation of the Altman Z-Score. This score, formulated by Edward I. Altman in 1968, is a widely used measure of a company's financial health and its likelihood of going bankrupt within the next two years.
Our Altman Z-Score Calculator operates by applying a specific formula that takes into account several financial ratios derived from a company's financial statements. Understanding this formula is crucial, as it can help users grasp the importance of each factor in determining the overall financial health of a business.
Our Altman Z-Score Calculator is designed to be user-friendly and simple to navigate. By following the steps outlined below, you can swiftly and accurately assess your company's financial health.
Example 1: If a company has a Working Capital/Total Assets ratio of 0.2, Retained Earnings/Total Assets ratio of 0.3, EBIT/Total Assets ratio of 0.5, Market Value of Equity/Book Value of Total Liabilities ratio of 1, and Sales/Total Assets ratio of 2, the Z-Score would be 4.6, indicating a low probability of bankruptcy.
Example 2: If the same company has a Working Capital/Total Assets ratio of -0.2, the Z-Score would drop to 3.2, indicating a higher probability of bankruptcy.
As we conclude, it's important to highlight the security features of our Altman Z-Score Calculator. Developed entirely in JavaScript and HTML, all data you input into the tool stays on your device and is never sent to a server. This secure design guarantees that your financial data stays private and safe. Our Altman Z-Score Calculator is not just a tool, but a reliable partner in your financial analysis journey. We hope it serves as an invaluable resource for understanding your business's financial health and making informed, data-driven decisions.
The Altman Z-Score is a measure of a company's financial health and its likelihood of bankruptcy within the next two years.
Enter the values for the five financial ratios, and click 'Calculate'. The Z-Score will be displayed instantly.
Yes, all data input into the tool stays on your device and is never sent to a server.
