Ohlson O-Score

The Ohlson O-Score is a financial metric used to predict the likelihood of a company going bankrupt. Developed by professor James Ohlson, it combines various financial ratios and data points—like a company’s earnings, assets, and liabilities—into a single score. A higher O-Score indicates a greater risk of bankruptcy, while a lower score suggests better financial health. Investors and analysts use the O-Score to assess the stability and risk of investing in a company, helping them make informed decisions based on its financial condition.