⚠️ Altman Z-Score Calculator
Estimate a public manufacturing company’s financial distress risk using the classic Altman Z-Score model.
What is the Altman Z-Score?
The Altman Z-Score is a formula developed by Edward Altman in 1968 to estimate the likelihood that a public manufacturing company will face bankruptcy within the next two years, based on five financial ratios derived from its balance sheet and income statement.
The formula
Z = 1.2(Working Capital/Total Assets) + 1.4(Retained Earnings/Total Assets) + 3.3(EBIT/Total Assets) + 0.6(Market Value of Equity/Total Liabilities) + 1.0(Sales/Total Assets). A score above 2.99 is generally considered a “safe zone,” between 1.81 and 2.99 a “grey zone,” and below 1.81 a “distress zone.”
This calculator is for general financial education and analysis practice, not investment or credit advice. The original model was designed for publicly traded manufacturing firms and may be less reliable for other industries.