What Is the Altman Z-Score?
Altman Z″ Score is the non-manufacturer variant of Edward Altman's bankruptcy risk model. It weights four ratios (working capital/assets, retained earnings/assets, EBIT/assets, equity/debt) into a single score and maps bankruptcy probability into distress / grey / safe zones.
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How to read
- The large number is the total Z″ value; the label below indicates the safe / grey / distress band.
- Components and their contributions are listed below — you can see which one is pulling the score up or down.
- At the bottom a three-color strip (red/yellow/green) shows the 1.1 / 2.6 thresholds and where the current Z″ sits visually.
- If a component is missing it shows up in the 'missing' list and the score may display as N/A.
Threshold ranges
- Z″ > 2.6Safe zone — low bankruptcy risk.
- Z″ 1.1 – 2.6Grey zone — monitor, inconclusive.
- Z″ < 1.1Financial distress signal — elevated near-term risk.
Watch out for
- Z″ was optimized for classic manufacturing/retail; it's not meaningful for banks, insurance, or REITs — those models aren't asset-heavy in this sense.
- It's a point-in-time snapshot; check the 'Metrics Trend Heatmap' below to see the trajectory over time.
- Restructuring, large capex, or one-off write-offs temporarily depress Z″; don't panic without reading the filings.
Sector note
Altman's original model doesn't fit banks, insurance, or REITs; when this card shows N/A or very low for those, the cause is structural.
Try on live data
See these metrics on real US stocks: