Altman Z-score: related pages

The balance sheet shows what assets and liabilities the company has, and how the business is funded.

The risk that the cash flows due from a debt instrument will not be paid, or will be paid late.

Profit before interest and tax, divided by interest payable.

(current assets - stocks) ÷ current liabilities. A measure of a company's ability to pay short term debt.

A measure of the extent to which a company is funded by debt.

The theory that over or undervaluation can be measured by market value of assets ÷ replacement value.

Ratings of the riskiness of debt and the credit-worthiness of corporate and sovereign borrowers. They are issued by a small number of agencies.