Financial analysts first assess the viability of a business using Altman’s Z-score. Corporate failure is linked to a series of actions which relate to the company’s fundamentals, and in the long-term reflect the likelihood of a business going bankrupt. According to this statement, Prof. E. I. Altman developed in 1968 a multivariate statistical model considering a linear combination of several financial ratios that allow to differentiate between failing companies and non-failing ones. The result obtained from the model gives what is known as the Z-score. Low values indicate the company has a high probability of failing while high values predict the company is less likely to fail. In fact, Altman’s seminal work predicted correctly 72% of the bankrupted companies two years prior to the event.
VERSION HISTORY
- Version 1.35 posted on 2018-10-02
Update Android SDK - Version 1.31 posted on 2015-07-28
[1.31] Improved user interface.,[1.24] Merged with UK version (includes Taffler calculation).,[1.22] Improved calculation speed.,[1.21] Now allows to install in your SD card.,[1.05] Includes new company typology: non-manufacturing companies or emerging markets companies.,[1.00] Calculates probability of default by means of the normal density function approximation.
Program Details
- Category: Business > Accounting & Finance
- Publisher: Business Research & Applications Limited
- License: Free
- Price: N/A
- Version: 1.35
- Platform: android