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 ...

In statistics and financial analysis, a Z score measures how normal any given data point is compared to the average value of the data. Finding Z scores, or standard scores, is relevant to many ...

Solvency is a concern for non-Tesla car companies. The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at ...

Naturally, the formula isn’t perfect. The Altman Z-Score doesn’t do the best job accounting for deferred revenue, which can make software companies in particular look worse off than they really are.