Beaver's Z-Score

Beaver's Z-Score is a statistical method used to evaluate how well a company can meet its short-term obligations, like paying bills, based on its financial health. It combines several key financial ratios—such as working capital, retained earnings, and earnings before interest and taxes—into a single score. A higher Z-Score indicates a lower risk of financial trouble or bankruptcy, while a lower score suggests higher risk. This tool helps investors and creditors assess the company's stability and liquidity quickly and objectively.