Altman Z″-Score (non-manufacturers)
Altman’s variant for non-manufacturers drops the sales term and uses book equity, so asset-light companies are not marked down for low sales to assets.
How it is calculated
6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities
- Unit
- Ratio
- Periods
- Annual
- Source
- Calculated by stockrow from the inputs below