Z-Score

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Dictionary Says

Definition of 'Z-Score'

A statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. In a more financial sense, Z-score is the output from a credit-strength test that gauges the likelihood of bankruptcy.
Investopedia Says

Investopedia explains 'Z-Score'

A z-score of 0 is equal to a 50% probability of bankruptcy.

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'Z-Score'

  • How To Calculate A Z-Score

    http://www.investopedia.com/articles/fundamental/04/021104.asp
    How To Calculate A Z-Score. January ... As it turns out, the Z-score gives investors
    a pretty good snapshot of corporate financial health. Here ...

  • Shortcuts To The Z-Score

    http://stocks.investopedia.com/stock-analysis/2010/Shortcuts-To-The-Z-Score-JMBA-PERF-TLB-ZLC-GPS1129.aspx
    ... Shortcuts To The Z-Score. ... $7.3 billion. 1.5. Buckle (NYSE:BKE). $308 million. $509
    million. 0.6. Market Cap/Total Liabilities This is the fourth ratio in the Z-Score ...

  • Retail's Magic Numbers

    http://stocks.investopedia.com/stock-analysis/2009/Retails-Magic-Numbers-LIZ-JNY-RL-LULU-VFC-WMT1120.aspx
    ... York University finance professor Edward Altman created the Z-Score, a formula for
    predicting the likelihood a company would go bankrupt within two years. ...

  • Private Equity Kills Balance Sheets

    http://stocks.investopedia.com/stock-analysis/2010/Private-Equity-Kills-Balance-Sheets-DG-KAR-KKR-BX1224.aspx
    ... Piecing together the financial statements of private equity-owned companies before
    their purchase and today, we'll use the Z-Score to illustrate how private ...

  • Treasury Shares Wreak Havoc On Retained Earnings

    http://stocks.investopedia.com/stock-analysis/2010/Treasury-Shares-Wreak-Havoc-On-Retained-Earnings-ARO-MSFT-WMT-PEP-PM1214.aspx
    ... deficit. In a recent article, I was adamant that you couldn't have a good
    Z-Score if you didn't have positive retained earnings. ...

  • 5 Reasons To Love Balchem

    http://stocks.investopedia.com/stock-analysis/2010/5-Reasons-To-Love-Balchem-BCPC-ARG-PX-APD-ACET-IPHS0616.aspx
    ... Its current ratio of 3.1 is excellent and its Altman Z-Score (financial viability
    test) is 13.5. ... (What's a Z-score? Find out in Z Marks The End.). ...

  • K-Swiss Is Speculative But Tons Of Potential Remains

    http://stocks.investopedia.com/stock-analysis/2011/K-Swiss-Is-Speculative-But-Tons-Of-Potential-Remains-KSWS-RCKY-DFZ-WEYS-SKX0912.aspx
    ... Its current Z-Score is 3.3, which means it has a low probability of bankruptcy.
    Furthermore, its total debt is $11.8 million, just 6% of shareholder equity. ...

  • CFA Question of the Week 07/25/2006 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/072506.asp
    ... Answer: The correct answer is: D) First, transform the actual value of this outcome
    (-1.2%) into its standardized z-score: Z x = [(X - u x ) รท s x ] = [(-1.2 ...

  • Polaris Vs Arctic Cat: Which Is The Better Ride?

    http://stocks.investopedia.com/stock-analysis/2010/Polaris-Vs-Arctic-Cat-Which-Is-The-Better-Ride-PII-ACAT-HOG-MPX0601.aspx
    ... Financial Health. Altman's Z-score is a popular metric used to determine the
    liklihood that a company will go bankrupt within two years. ...

  • Make Money When Analysts Say Sell

    http://stocks.investopedia.com/stock-analysis/2010/Make-Money-When-Analysts-Say-Sell-TMX-TV-HOV-APKT-LVS1019.aspx
    ... Forbes published a Risk List in April 2010 highlighting 50 companies exhibiting
    extreme financial distress, Hovnanian ranked 11th with an Altman Z-Score of 0.5 ...

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