The Z-score was built to predict whether a company is likely to go bankrupt in the next 2 years. It was developed by finance professor Edward I. Altman and is based on multiple corporate income and balance sheet values. The Z-score will signal 70% of bankruptcies of publicly listed companies and predicted the demise of Enron, Worldcom, and other disasters.
The Altman Z-Score is displayed on a bullet graph. A value below 1.81 indicates that the company is in significant distress and there's a high probability that the company will go bankrupt in the next 2 years. A value between 1.81 and 2.99 indicates that there's a good chance that the company will go bankrupt in the next 2 years. A value above 2.99 indicates that the company is in the "safe" zone.
Please note that we currently support only the original Altman Z-Score. This is only valid for manufacturing companies.