adamLutPhi / Z-Score-Altman

the Altman's z score is a Solvency Predictor, was once known as a 'good' financial predictor of a company's solvency, based on logical Common Sense & Accounting Ratios

Solvency Altman's z-Score

the cut off score is a (5):

1. a Financial company Indicator,
2. a Linear equation: formed off an accounting Ratios
3. Seems to be a success, across the centuries (since its debut)

- from the wikipedia

4. An Indicator for calculating a company's distress (i.e. solvency)
5. This model relies on five (5) different Accounting Ratios

This model assumes:

1. All data are correct ( no scenario for data manipulation)
2. No additional, Sudden Emergency Cash Inflows (i.e. Bank loans, or bonds )

Hence, although it this model is not, by no means, realistic, on it's own

Paper

@article{Chouhan_et_al_2014_ILSHS_26_92,
    author       = {Vineet Chouhan, Bibhas Chandra, Shubham Goswami},
    title        = {{Predicting financial stability of select BSE companies revisiting Altman Z score}},
    year         = 2014,
    month        = apr,
    version      = {1.0},
    publisher    = {scipress},
    url          = {https://www.learntechlib.org/p/176534/article_176534.pdf},
    doi          = {10.18052/scipress.com/ILSHS.26.92},
    }

Article Download Link: https://www.learntechlib.org/... /article_176534.pdf

Disclaimer

This is for Educational purposes only The author is Not Held Responsible, at all costs

Author