Alternative Z-Score Models

Alternative Z-Score Models are financial tools used to assess the likelihood of a company facing bankruptcy. They analyze various factors, such as profitability, leverage, and liquidity, to create a score. A lower score suggests a higher risk of financial trouble, while a higher score indicates more stability. Unlike the original Z-Score model, these alternatives may use different variables or data sources to improve accuracy across various industries. Essentially, they help investors and analysts evaluate a company's financial health and risk level in a straightforward way.