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Credit Risk · Financial Distress
Altman Z-Score Credit Risk Analyzer
The bankruptcy-prediction model Edward Altman built in 1968, still taught in every credit analysis course, scored live from five balance sheet and income statement ratios.
Reading This Tool
How To Use This Calculator
Choose public or private company, set your total assets, then express the other four figures as ratios of that asset base.
Public companies use the original Z-Score, which relies on market value of equity. Private companies use the 1983 Z′-Score, Altman's own adjustment that substitutes book value of equity, since a private company has no market price. Both scores land in the same three zones: Distress, Grey, and Safe.
Your Inputs
Z-Score Result
-Z′-Score (Private Company)
0.00
Distress · Grey · Safe Zones
| Component | Ratio | Weighted Contribution |
|---|---|---|
| Working Capital / Total Assets | 0.00 | 0.00 |
| Retained Earnings / Total Assets | 0.00 | 0.00 |
| EBIT / Total Assets | 0.00 | 0.00 |
| Equity / Total Liabilities | 0.00 | 0.00 |
| Sales / Total Assets | 0.00 | 0.00 |
The Altman Z-Score was built and validated on manufacturing companies; it's less reliable for financial firms, early-stage companies with minimal assets, or asset-light service businesses. Treat a distress signal as a prompt to investigate further, not a verdict.