Altman

Altman is a financial metric used to assess a company's likelihood of bankruptcy within two years. It combines several key financial ratios into a single score, analyzing factors like profitability, leverage, liquidity, and operational efficiency. Developed by economist Edward Altman, the model helps investors and lenders evaluate a company's financial health quickly and objectively, aiding in risk assessment and decision-making. While not infallible, it provides a valuable early warning system for potential financial distress based on measurable financial data.