Edward Altman (finance scholar)

Edward Altman is a prominent finance scholar best known for developing the Altman Z-Score, a formula used to predict a company's likelihood of bankruptcy. Introduced in 1968, the Z-Score combines five financial ratios to assess a firm's financial health. This tool helps investors and analysts gauge credit risk and make informed decisions. Altman’s research has significantly influenced corporate finance, risk management, and investment analysis, making him a key figure in the understanding of financial stability and distress. His work has practical applications across various industries and continues to be relevant in financial assessments today.