Z-score model

Z-score model definition - finance
A model that is used to predict the likelihood of a company going into bankruptcy. The model was developed in 1968 by Edward Altman. A score below 2.675 signals bankruptcy. He developed a more refined model in 1977 that he called the ZETA model, whose characteristics are proprietary.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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