What if you could calculate the probability that a business
could go bankrupt in the next two years and save them?
That’s what the Altman Z Score Analysis is all about. Based on a composite score of 5 critical ratios, the Z Score Analysis provides statistically significant indication of bankruptcy probability. The higher the composite score the better. City Cycle is in good shape. What about yours or a client’s business?
Wouldn’t it be good to know for sure in time to prevent it?
Here are the 5 predictive ratios:
- Working Capital/Total Assets
- Retained Earnings/Total Assets
- Net Profit Before Taxes/Total Assets
- Equity/Total Liabilities
- Net Sales/Total Assets.