Altman Z Score Calculator

Background.

The practical question behind Altman Z Score Calculator is whether you can reproduce the original public-manufacturing Z-score from five published weighted ratios. In this context, altman's 1968 model combines liquidity, cumulative profitability, operating return, market leverage and asset turnover into one discriminant score. The calculator therefore applies “Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + Sales/TA.”

The editable entries are working capital, retained earnings, ebit, market value of equity, sales, total assets, total liabilities. Use values from the document or measurement that governs this altman z score question; the defaults are only the worked fixture below. The original coefficients and cutoffs are not calibrated for private, non-manufacturing or modern sector-specific firms. That altman z score boundary is part of the answer, not a generic disclaimer.

Edward Altman, Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy (1968) (BIBLIOGRAPHIC) documents the convention or governing rule used here. The altman z score output is a transparent scenario under those facts: it does not manufacture an unentered market price, professional determination, carrier quote, legal eligibility finding or locally adopted code value.

What is altman z score calculator?

Altman Z Score is the relationship behind this decision: altman's 1968 model combines liquidity, cumulative profitability, operating return, market leverage and asset turnover into one discriminant score. On this page it means Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + Sales/TA. The original coefficients and cutoffs are not calibrated for private, non-manufacturing or modern sector-specific firms; that is the line between the reported quantity and a broader business finance analysis.

How to use this calculator.

1. 01Confirm that “Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + Sales/TA” matches the altman z score convention you need.
2. 02Replace the fixture values for working capital, retained earnings, ebit, market value of equity, sales, total assets, total liabilities with dated values from the governing record.
3. 03Keep all currencies, measurement units and time periods on the same basis before calculating.
4. 04Read original public-manufacturer altman z-score together with this boundary: The original coefficients and cutoffs are not calibrated for private, non-manufacturing or modern sector-specific firms.

The formula.

The calculation uses Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + Sales/TA. In this altman z score model, the entered terms are working capital, retained earnings, ebit, market value of equity, sales, total assets, total liabilities. Altman's 1968 model combines liquidity, cumulative profitability, operating return, market leverage and asset turnover into one discriminant score, which is why the relationship is presented under this name rather than as a universal alternative. The original coefficients and cutoffs are not calibrated for private, non-manufacturing or modern sector-specific firms. Calculations keep full decimal precision through the relationship and round only the returned display values.

A worked example.

Frequently asked questions.

References& sources.

1. [1]Edward Altman, Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy (1968) (BIBLIOGRAPHIC). Retrieved 2026-08-07. access: open unless marked otherwise.
2. [2]U.S. Census Bureau. Quarterly financial report. Retrieved 2026-08-07. independence: secondary-check; access: open.
3. [3]Financial Accounting Standards Board. Accounting Standards Codification. Retrieved 2026-08-07. independence: primary; access: open.
4. [4]Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589-609. Source of the Z-score coefficients used here. independence: primary; access: gated. (PAYWALL)
5. [5]U.S. Securities and Exchange Commission. Investor.gov glossary: Market capitalization. Retrieved 2026-08-07. independence: primary; access: open.