Zmijewski Score

The Zmijewski Score is a financial metric used to assess a company's likelihood of bankruptcy. Developed by Edward Zmijewski in the 1980s, it analyzes a combination of financial ratios related to a company’s profitability, asset utilization, and liquidity. The score ranges from negative to positive values; a higher score suggests a lower risk of bankruptcy, while a lower or negative score indicates a higher risk. It is particularly useful for investors and analysts to evaluate the financial health of a business and make informed decisions about investments or credit.