Altman Z-Score Corporate Credit Solvency & Distress Calculator

Compute corporate Altman Z-Score and classify Safe (>2.99), Grey, or Distress (<1.81) zones.

Altman Z-Score Credit Index
3.51 Z-Score
Operating EBIT Contribution (3.3×X₃) 0.53 pts
Leverage Buffer Contribution (0.6×X₄) 1.08 pts
Margin Above 1.81 Distress Cutoff 1.7 pts
Inputs
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
ratio
Working Capital ÷ Total Assets ratio (X₁).
ratio
Retained Earnings ÷ Total Assets ratio (X₂).
ratio
EBIT ÷ Total Assets operating return ratio (X₃).
ratio
Market Value of Equity ÷ Total Liabilities ratio (X₄).
ratio
Annual Sales ÷ Total Assets turnover ratio (X₅).
Results & Graph
Altman Z-Score Credit Index
3.51 Z-Score
Operating EBIT Contribution (3.3×X₃)
0.53 pts
Leverage Buffer Contribution (0.6×X₄)
1.08 pts
Margin Above 1.81 Distress Cutoff
1.7 pts

Altman Z-Score Credit Index

Graph 1 • Working Capital Ratio Sensitivity Recalculates the domain equation across 50% to 150% of the primary input while holding other parameters constant.
0 Z-Score 2.0 Z-Score 3.9 Z-Score 50%: 3.38 Z-Score 3.4 50% 75%: 3.45 Z-Score 3.5 75% 100%: 3.51 Z-Score 3.5 100% 125%: 3.58 Z-Score 3.6 125% 150%: 3.64 Z-Score 3.6 150%
Graph 2 • Primary & Supporting Metric Comparison Compares the primary output alongside supporting domain benchmarks.
Altman Z-Score Credit Index 3.51 Z-Score Operating EBIT Contribution (3.3×X₃) 0.53 pts Leverage Buffer Contribution (0.6×X₄) 1.08 pts Margin Above 1.81 Distress Cutoff 1.7 pts
Graph 3 • Exact Output Table & Units Displays each calculated output in its exact domain unit.
Altman Z-Score Credit Index3.51 Z-ScoreOperating EBIT Contribution (3.3×X₃)0.53 ptsLeverage Buffer Contribution (0.6×X₄)1.08 ptsMargin Above 1.81 Distress Cutoff1.7 pts
Summary: Composite Altman Z-Score is 3.51 (Safe Zone (>2.99)).
Summary: Composite Altman Z-Score is 3.51 (Safe Zone (>2.99)).
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Formula & Mathematical Methodology: Altman Z-Score Mathematical Formula

Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + 1.0(Sales/TA)
Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + 1.0(Sales/TA)
  • workingCapitalRatio: Working Capital Ratio (ratio)
  • retainedEarningsRatio: Retained Earnings Ratio (ratio)
  • ebitToAssetsRatio: Ebit To Assets Ratio (ratio)
  • equityToDebtRatio: Equity To Debt Ratio (ratio)
  • assetTurnoverRatio: Asset Turnover Ratio (ratio)

Rounding: Intermediate calculations retain full IEEE-754 floating-point precision; displayed currency and ratios round to 2 decimal places.

Worked Example: Benchmark Scenario: Altman Z-Score

Compute corporate Altman Z-Score and classify Safe (>2.99), Grey, or Distress (<1.81) zones.

  1. Enter the portfolio, option, lease, or corporate balance-sheet inputs.
  2. Evaluate the core equation: Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + 1.0(Sales/TA).
  3. Inspect the primary valuation output, risk metrics, and 3 visual SVG graphs.
Result: Computes Altman Z-Score using Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + 1.0(Sales/TA).

Frequently Asked Questions

How does the Altman Z-Score Corporate Credit Solvency & Distress Calculator calculate results?

It evaluates Z = 1.2(WC/TA) + 1.4(RE/TA) + 3.3(EBIT/TA) + 0.6(MVE/TL) + 1.0(Sales/TA) directly in your browser and updates the three domain SVG visualizations immediately as you adjust any input.

Can I compare multiple investment or financing scenarios side by side?

Yes. Click "Compare (0/3)" in the results toolbar to pin up to three scenarios side by side.

Are my financial numbers kept private?

Yes. All calculations run 100% locally in your browser with zero server uploads.

Business & Marketing · Corporate Finance & Equity

Altman Z-Score Corporate Credit Solvency & Distress Calculator: inputs, method, and how to read the result

Compute corporate Altman Z-Score and classify Safe (>2.99), Grey, or Distress (<1.81) zones.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Working Capital Ratio: Working Capital ÷ Total Assets ratio (X₁).
  • Retained Earnings Ratio: Retained Earnings ÷ Total Assets ratio (X₂).
  • Ebit To Assets Ratio: EBIT ÷ Total Assets operating return ratio (X₃).

What the calculation includes

With the default values shown, Altman Z-Score Credit Index is 3.51 Z-Score. The calculation follows Altman Z-Score Mathematical Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Working Capital Ratio from 0.22 ratio to 0.24 ratio changes Altman Z-Score Credit Index from 3.51 Z-Score to 3.54 Z-Score. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses standard quantitative finance, GAAP/IFRS operating ratios, and continuous/periodic compounding conventions.
  • For educational and analytical modeling only; consult a licensed CPA, CFA, or fiduciary advisor before executing tax or derivative transactions.

Scope: Global Financial & Corporate Valuation Standard Check the assumptions and limitations against your situation before relying on the estimate.

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