Altman Z"-Score (Z"-Score)

The Altman Z"-Score is a financial metric used to assess a company's likelihood of bankruptcy. Developed by Edward Altman in the 1980s, it combines several financial ratios from a company's balance sheet and income statement into a single score. A higher Z"-Score indicates a lower risk of bankruptcy, while a lower score suggests higher risk. This score helps investors, creditors, and analysts evaluate the financial health of a company, supporting informed decision-making on investments or loans. It is particularly useful for businesses in the manufacturing sector and other industries.