I will try my best to explain the "Altman Z Score". The Altman Z Score is a multi-discriminant analysis approach for determining the financial health usually of a company. It was developed by Edward Altman. It is an approach that allows the simultaneous analysis of several common financial ratios and answers the question of how to determine financial health when some of the ratios appear strong and others weak. The equation that Altman developed assigns a relative weight classification to the various ratios on the basis of how well they predict bankruptcy.
I hope this helps, best always,
Eric :>)
Eric M. Kaufman
Senior Law Librarian
Stroock & Stroock & Lavan
180 Maiden Lane
New York, NY 10038
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ekaufman@stroock.com
"Any opinions expressed are my own and not those of my employer".
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