Altman Band

The Altman Band, also known as the Altman Z-Score Model, is a financial tool used to predict a company's likelihood of bankruptcy. Developed by Edward Altman in the 1960s, it combines various financial ratios from a company's balance sheet and income statement. By calculating a score based on these ratios, the model categorizes companies into different risk levels for bankruptcy—ranging from safe to distressed. Investors and analysts often use the Altman Band to make informed decisions about a company’s financial health and risk profile. It's a valuable indicator in assessing investment safety.