Predicting Corporate Bankruptcy using the Altman Z-Score Ratio

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The Altman Z-Score is provided on numerous investment websites, but many people are unaware of how it’s calculated, let alone what scores are good or bad. This article explains how the Altman Z-Score is calculated, what the score means, and provides a complete example calculation using a real-world corporation. Investors tend to avoid companies with a low Altman Z-Score as they have…



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Adrian J. Mayer

I hold 5 college degrees including a BBA in Finance, MBA, DBA, and post-doc in Applied Statistics. I work for a non-profit in Orlando, FL as a business analyst.