Altman, Edward I.

Edward I. Altman is a prominent financial economist known for developing the Altman Z-Score, a formula used to predict a company's likelihood of bankruptcy. Introduced in 1968, the Z-Score combines various financial ratios to assess a firm's financial health. It is widely used by investors, creditors, and analysts to evaluate risk. The score helps them make informed decisions about lending or investing in a company. Altman's work has significantly contributed to the fields of finance and risk assessment, providing tools to gauge corporate stability in a straightforward manner.