Altman Z-score
Combine five weighted ratios into a single Altman Z-score that flags how close a company is to financial distress, and see which zone — safe, grey or distress — it falls into.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Total assets and liabilities
The balance-sheet totals. They form the denominators of four of the five ratios.
- Working capital and retained earnings
Working capital (current assets minus current liabilities) and accumulated retained earnings — liquidity and cumulative profitability.
- EBIT and sales
Operating profit before interest and tax, and revenue — the operating-return and efficiency ratios.
- Market cap
The market value of equity, which against total liabilities measures market solvency. Read the score against the zone thresholds.
Worked example: A healthy manufacturer
Total assets ₹1,000 cr, liabilities ₹400 cr, working capital ₹200 cr, retained earnings ₹300 cr, EBIT ₹150 cr, sales ₹1,200 cr, market cap ₹1,000 cr.
What to enter
- Total assets
- ₹1,000 cr
- Total liabilities
- ₹400 cr
- Working capital
- ₹200 cr
- Retained earnings
- ₹300 cr
- EBIT
- ₹150 cr
- Sales
- ₹1,200 cr
- Market cap
- ₹1,000 cr
What it shows you
- Z-score
- 3.85
- Zone
- Safe (> 2.99)
- Grey zone
- 1.81 – 2.99
- Distress line
- Below 1.81
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Fundamental Analysis11 minThe Altman Z-score: a bankruptcy early-warningOne number, built from five ratios, that flags whether a company is drifting toward financial distress. How it is built, the safe and danger zones, and where it works and where it does not.
- Fundamental Analysis9 minThe Ohlson O-score: bankruptcy odds from nine numbersThe Altman Z-score gives you a score and a zone. The Ohlson O-score does something subtly different — it runs nine financial inputs through a statistical model and hands back a probability of bankruptcy. Same job, different maths, and a useful second opinion.
- Fundamental Analysis11 minThe balance sheetA photograph of what the company owns and owes on one day, and the two ratios that reveal whether it can survive a bad year.
- Fundamental Analysis13 minWorking capital: the cash that growth eatsA company can grow revenue 30% a year and run out of money. The cash conversion cycle explains how, and it is the most reliable early warning in fundamental analysis.