Altman Z-Score

$$1.2\cdot \frac{WC}{TA}+1.4\cdot \frac{RE}{TA}+3.3\cdot \frac{EBIT}{TA}+0.6\cdot \frac{MV}{TL}+1.0\cdot \frac{S}{TA}$$

Bankruptcy-risk discriminant score (Altman 1968). Z > 2.99 = safe, 1.81-2.99 = gray, < 1.81 = distress. The 1968 manufacturing variant; later Altman variants exist for non-manufacturing and emerging markets.

Direction: Higher better Category: forensic

Inputs (XBRL fallback chains):

• assets: Assets
• current_assets: AssetsCurrent
• current_liabilities: LiabilitiesCurrent
• liabilities: Liabilities
• operating_income: OperatingIncomeLoss
• retained_earnings: RetainedEarningsAccumulatedDeficit
• revenue: Revenues -> RevenueFromContractWithCustomerExcludingAssessedTax -> RevenueFromContractWithCustomerIncludingAssessedTax -> SalesRevenueNet -> SalesRevenueGoodsNet

Returns None when: Returns None when market cap, total liabilities, or any of (working capital, retained earnings, EBIT, revenue, total assets) is missing. Returns None for zero-debt firms (MV/TL undefined).

Source code

Implementation: altman_z_score in src/eqtytrk/metrics/ratios.py (or valuation.py for multiples).

See also

For full methodology — decomposition, thresholds, when each score lights up vs the others, citations to original papers — see the Forensic screening essay.