Altman Z-Score Calculator
Result
Altman Z-Score Calculator The Altman Z-Score Calculator gauges a company's bankruptcy risk by combining five financial ratios into a single score. Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(Equity/TA) + 1.0(Sales/TA). Above 2.99 is the safe zone; be — free online calculator.
Formula
- Altman Z-Score Calculator calculates its result from X5, X4, X3, X1, X2. It uses the formula Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + X5. Change any input to recalculate the result instantly.
- The main inputs are X5, X4, X3, X1, X2. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Altman Z-Score
- X5: 2
- X4: 3
- X3: 4
- X1: 5
- X2: 6
Using X5 = 2, X4 = 3, X3 = 4, X1 = 5, X2 = 6, the calculated result is 31.4.
Sample result: Calculating…
Frequently asked questions
What does the Altman Z-Score calculate?
Altman Z-Score Calculator The Altman Z-Score Calculator gauges a company's bankruptcy risk by combining five financial ratios into a single score. Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(Equity/TA) + 1.0(Sales/TA). Above 2.99 is the safe zone; be — free online calculator.
Which values should I enter?
Enter X5, X4, X3, X1, X2 using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + X5.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.