Edward Altman (economist)

Edward Altman is an American economist best known for developing the Altman Z-score, a formula used to predict the likelihood of a company going bankrupt. This model analyzes various financial metrics, such as profitability and debt levels, to assess a firm's financial health. Originally introduced in the 1960s, the Z-score has become a vital tool for investors, analysts, and lenders to evaluate risk. Altman's work has significantly influenced the fields of finance and risk management, helping stakeholders make informed decisions about business stability and investment opportunities.