Altman (Edward I. Altman)

Edward I. Altman is renowned for developing the Z-Score, a financial model that predicts a company's likelihood of bankruptcy within two years. It analyzes key financial ratios from a firm’s balance sheet and income statement to produce a score indicating financial health. A higher Z-Score suggests stability, while a lower score signals potential distress. This tool is widely used by investors, creditors, and managers to assess risk and make informed decisions about a company's financial viability. Altman’s work provides a systematic way to evaluate corporate financial stability based on quantitative data.