Altman Z-Score Calculator

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Altman published separate coefficient sets for each type. Using the wrong model will produce misleading results.
Total assets from the balance sheet (any currency unit, must be consistent).
M
Current assets from the balance sheet.
M
Current liabilities from the balance sheet.
M
Cumulative retained earnings from the equity section. Can be negative for companies with a history of losses.
M
Earnings before interest and taxes (operating income).
M
For public firms: shares outstanding multiplied by share price. For private and service firms: total book equity from the balance sheet.
M
Total liabilities from the balance sheet (current + non-current).
M
Annual net revenues from the income statement.
M
Altman Z-ScoreGrey Zone
2.18

The composite financial health score

X1: Working Capital / Total Assets0.14
X2: Retained Earnings / Total Assets0.24
X3: EBIT / Total Assets0.12
X4: Equity Value / Total Liabilities0.8
X5: Sales / Total Assets0.8
2.18
Distress<1.81Grey Zone1.81-2.99Safe2.99+

Z-Score of 2.18 places this company in the Grey Zone (moderate bankruptcy risk).

  • Using the public manufacturing model, the Safe threshold is 2.99 and the Distress threshold is 1.81.
  • X1 (Working Capital / Total Assets) = 0.140: positive working capital indicates short-term liquidity is intact.
  • X2 (Retained Earnings / Total Assets) = 0.240: accumulated profits suggest financial resilience.
  • X3 (EBIT / Total Assets) = 0.120: asset productivity is healthy.
  • X4 (Equity / Total Liabilities) = 0.800: liabilities exceed equity, reflecting higher leverage.

Next stepGrey Zone results are ambiguous. Cross-check with current-ratio trends, debt-service coverage, and industry peer comparisons before drawing conclusions.

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