Altman Z-Score (Bankruptcy Risk)
Edward Altman's formula for predicting the probability that a firm will go into bankruptcy within two years.
v1.0.00 variables6 edgesOpenCM 1.0
Common Uses
- Bankruptcy risk screening for a credit-committee review
- Early-warning triage of distressed borrowers
- Comparing financial health across portfolio companies
- Supplement to DCF for downside-case sensitivity
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