Altman Z Score Calculator

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Altman Z-Score Calculator

Predict the likelihood of corporate bankruptcy using Edward Altman's Z-Score model.

Last updated: 2026-05-24T22:58:29.610Z

Results
Enter total assets and other inputs to compute the Z-Score.

About Altman Z-Score

The Altman Z-Score is a multivariate formula used to predict the probability that a firm will go into bankruptcy within two years. It uses several balance-sheet and income statement ratios.

Interpret Z-Score ranges as distress, grey, and safe zones for financial health assessment.

How to Use

  1. Provide total assets and related inputs for the same reporting period.
  2. Review component ratios to identify drivers of the Z-Score.
  3. Use the Z-Score as an early-warning signal, not a definitive predictor.

Example

Using sample inputs yields a Z-Score which you can compare to the standard thresholds to evaluate default risk.

FAQs

What is a safe Z-Score?
Generally >2.99 is considered safe.
What is a distress Z-Score?
Scores below 1.81 indicate potential distress.
Is this universal?
Interpretation can vary by industry and company size.
Can Z-Score change quickly?
Yes — large swings in EBIT, assets or equity can move the score.

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