Altman Z-Score Calculator

Estimate bankruptcy risk (public manufacturing model)

How to Use This Calculator

Fill in the financial statement inputs from your latest period. Click Calculate to see the Z-Score and the corresponding risk zone.

Formula

Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

X1 = Working Capital / Total Assets

X2 = Retained Earnings / Total Assets

X3 = EBIT / Total Assets

X4 = Market Value of Equity / Total Liabilities

X5 = Sales / Total Assets

About Altman Z-Score Calculator

The Altman Z-Score predicts the probability of corporate bankruptcy using five financial ratios. This implementation reflects the original public manufacturing model.

Interpreting Results

  • Safe Zone: Z > 2.99
  • Grey Zone: 1.81 ≤ Z ≤ 2.99
  • Distress Zone: Z < 1.81

Frequently Asked Questions

Which Altman model is used?

The public manufacturing (original) model with coefficients 1.2, 1.4, 3.3, 0.6, and 1.0.

Can I use this for private or non-manufacturing firms?

Those require alternative coefficients. This tool targets public manufacturing firms.

Which period should I use for inputs?

Use the latest annual or trailing-twelve-months values consistently across inputs.