Developed by NYU Stern financial economist Edward Altman, the Altman Z-score predicts the likelihood of a company of going bankrupt within a two-year period. Unlike the Piotroski F-score, which only ...

Devised in the 1960s by Edward Altman, a Z score indicates the probability of a company entering bankruptcy within the next two years. The higher the Z score, the lower the probability of bankruptcy.

Among all stocks trading on the New York Stock Exchange and Nasdaq, two medical companies, Intuitive Surgical Inc. (ISRG) and Anika Therapeutics Inc. (ANIK), have relatively strong Altman Z-scores.

In this article, Manward Press Founder Andy Snyder looks at the Altman Z-Score. It’s a little-known but very powerful indicator formula that helps investors identify companies that are at high risk ...

Since its debut in 1968, the Altman Z-Score has been followed religiously by analysts worldwide due to its ease of calculation and relative accuracy at predicting bankruptcies (72% in its initial test ...

The New York University professor who developed one of the best-known formulas for predicting corporate insolvencies has a warning for U.S. credit investors: this year’s spate of “mega” bankruptcies ...

Edward Altman, who created the Z-score method for predicting bankruptcies 50 years ago, has built on the model to assess creditworthiness of small- and medium-sized enterprises. Together with Gabriele ...

Altman's original five-ratio model (see Altman Z-score) was designed for manufacturers, or sectors with high capital intensity, such as mining. The problem is it uses the sales/total assets ratio, ...

Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial ...