(Reuters) -The Z-Score, a widely used formula for predicting corporate bankruptcies, has been signaling greater chances of a default by General Motors Corp since the automaker posted a $15.5 billion ...
Naturally, the formula isn’t perfect. The Altman Z-Score doesn’t do the best job accounting for deferred revenue, which can make software companies in particular look worse off than they really are. R ...
Altman considered companies with an Altman Z-Score over 2.6 “safe,” companies with a score between 1.1 and 2.6 in a “gray” zone, and companies with a score under 1.1 “at risk.” In brief, the formula ...