Credit Analysis
Example - If the Altman Z score cut off for a credit
worthy business is 2.7 or higher, would we accept
the following client?A score above 2.7 indicates good credit.
Firm' s Z Score
( 3. 3 x. 12 ) + ( 1. 0 x 1. 4 ) + (. 6 x. 9 ) + ( 1. 4 x. 4 ) + ( 1. 2 x. 12 ) = 3. 04