Atlas / Glossary / Altman Z-score Altman Z-score A 1968 discriminant model combining five accounting ratios into one distress score. Above 2.99 is the safe zone, below 1.81 the distress zone. Built on US manufacturers and a screen rather than a rating.
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Where Altman Z-score is explained in depth The definition above is the short version. These pages put it to work, in the order they use it most:
Calculators that compute it The whole glossary
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The same in full — six points, and why each one matters No advice, no recommendation. Nothing on this page constitutes investment, financial, legal, tax or accounting advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instrument.Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.The examples are simplified. Worked examples use round numbers and leave out costs, spreads , taxes, collateral , settlement and market conventions that materially change real outcomes.The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.These instruments carry risk. You can lose your entire investment. Leveraged instruments — futures, options , CFDs, perpetual futures and similar — can cost you considerably more than you originally deposited.We are not a regulated firm. StrikeAndYield is an independent publication by DELISORIA. It is not a bank, broker, fund manager or licensed adviser, it provides no financial services, and reading it creates no client relationship. For decisions about your own money, consult a professional licensed in your jurisdiction. See the full disclaimer .