hi, what is the scope of Altaman score in analysis?
The Altman Z-Score is an analytical representation created by Edward Altman in the 1960s which involves a combination of five distinctive financial ratios used for determining the odds of
Formula for Z-Score
The Z-Score can be characterized as a linear combination of 4-5 common business ratios. These ratios are weighted by coefficients which are estimated by spotting a set of firms which had declared a
4-factor model of the Altman Z-score (for a private non-manufacturer):
Z-score = 6.56T1 + 3.26T2 + 6.72T3 + 1.05T4