Altman Z-Score Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

Share Print Save

Altman Z-Score Calculator gives a compact way to test the financial relationship represented by its form. The goal is to keep the arithmetic transparent while you compare different input scenarios.

What this calculator does

Altman Z-Score Calculator calculates the original Altman Z-score from five balance-sheet and income-statement ratios to provide a historical corporate distress-screening signal. It works from working capital, retained earnings, ebit, market value of equity, sales, total assets, and total liabilities. For Altman Z-Score Calculator, that narrow input set is intentional: it lets you isolate the relationship being measured instead of blending in unstated forecasts.

How to use it

Fill in Working capital, Retained earnings, EBIT, Market value of equity, Sales, Total assets, and Total liabilities, using values from the same scenario. Use one currency for all monetary fields in Altman Z-Score Calculator; the currency selector formats the result and does not convert exchange rates. Before calculating, recheck Working capital, Retained earnings, EBIT against the source numbers you intend to analyze.

How the calculation works

Z = 1.2(WC/Assets) + 1.4(RE/Assets) + 3.3(EBIT/Assets) + 0.6(Market equity/Liabilities) + 1.0(Sales/Assets). Using the same relevant values and formula should reproduce the Altman Z-Score Calculator result independently. For Altman Z-Score Calculator, when the output is extreme, first confirm the form values and units rather than assuming the calculation represents the intended scenario.

Example

The calculator forms each ratio from the seven entered statement values, multiplies by the original coefficient, and sums the components into one Z-score. For another Altman Z-Score Calculator scenario, keep the same formula and replace only the displayed inputs you want to test.

How to interpret the result

In this implementation, scores above 2.99 are labeled lower distress signal, below 1.81 higher distress signal, and values between them a grey zone. These are historical model bands, not a current credit rating. Read the Altman Z-Score Calculator output as the specific relationship calculated from the form, not as a complete investment or credit decision by itself.

Limitations and notes

The original Z-score was developed for a specific corporate context and has later variants for other firms. It should not be used as a stand-alone bankruptcy prediction, and accounting quality, industry, country, firm type, and current financing conditions can change its usefulness. The 1.81 and 2.99 bands displayed by the calculator are the classic historical zones for this original specification and should not be presented as a regulatory or rating-agency standard. If you revisit Altman Z-Score Calculator later, refresh the displayed inputs instead of carrying an old result forward.