basic

Altman Z-Score for Public Manufacturers Calculator

Z = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E.

Compute the Altman Z-score (1968) for predicting bankruptcy risk in publicly traded manufacturers. Z combines five ratios: A = working capital / total assets, B = retained earnings / total assets, C = EBIT / total assets, D = market value of equity / total liabilities, E = sales / total assets. Z > 2.99 = safe; 1.81-2.99 = grey zone; < 1.81 = distress.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Z = 1.2·A + 1.4·B + 3.3·C + 0.6·D + 1.0·E.

In depth

Compute the Altman Z-score (1968) for predicting bankruptcy risk in publicly traded manufacturers. Z combines five ratios: A = working capital / total assets, B = retained earnings / total assets, C = EBIT / total assets, D = market value of equity / total liabilities, E = sales / total assets. Z > 2.99 = safe; 1.81-2.99 = grey zone; < 1.81 = distress.