Edward Altman

Edward Altman is an American finance professor best known for developing the Altman Z-Score, a formula used to predict the likelihood of a company going bankrupt. The Z-Score combines financial ratios that assess a company's profitability, liquidity, and overall financial health. Introduced in 1968, it helps investors, analysts, and businesses evaluate credit risk. Altman's work has significantly influenced corporate finance and risk management, providing valuable insights into the financial stability of firms across various industries. His contributions have made him a respected figure in the fields of finance and economics.