What this calculator does
Altman Z-Score works out bankruptcy-risk score for a company from five balance-sheet and income ratios. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaZ = 1.2·(NWC/TA) + 1.4·(RE/TA) + 3.3·(EBIT/TA) + 0.6·(MVE/TL) + 1.0·(Sales/TA)
The inputs explained
| Field | What to enter |
|---|---|
| Net working capital ($) | A number, measured in your currency. Starts at 500000. |
| Total assets ($) | A number, measured in your currency. Starts at 2000000. |
| Retained earnings ($) | A number, measured in your currency. Starts at 600000. |
| EBIT (operating profit) ($) | A number, measured in your currency. Starts at 300000. |
| Market value of equity ($) | A number, measured in your currency. Starts at 1800000. |
| Total liabilities ($) | A number, measured in your currency. Starts at 1200000. |
| Sales (revenue) ($) | A number, measured in your currency. Starts at 2500000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with net working capital
Every other input is held at the calculator’s starting values while net working capital varies. Select any row to load that scenario into the calculator.
How the answer changes with net working capital
| Net working capital ($) | Altman Z-Score | Zone | Working capital / total assets |
|---|---|---|---|
| 250,000 | 3.22 | Safe: low probability of financial distress | 0.125 |
| 375,000 | 3.29 | Safe: low probability of financial distress | 0.188 |
| 500,000 | 3.36 | Safe: low probability of financial distress | 0.250 |
| 750,000 | 3.51 | Safe: low probability of financial distress | 0.375 |
| 1,000,000 | 3.67 | Safe: low probability of financial distress | 0.500 |
| 1,500,000 | 3.97 | Safe: low probability of financial distress | 0.750 |