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How we compute the Altman Z-score

The Altman Z-score blends five ratios from a company's balance sheet and income statement into one solvency score. We compute every input directly from SEC XBRL facts and show the formula, the source concepts, and the distress zones.

The Altman Z-score, introduced by Edward Altman in 1968, weighs five financial ratios into a single number that summarizes how far a company sits from financial distress. It was built for public manufacturers, and that is the variant we compute.

Each of the five components scales a balance-sheet or income-statement figure by total assets, except the fourth, which scales the market value of equity by total liabilities. We compute every input from XBRL facts filed with the SEC, so the score is fully first-party and each number can be traced back to the filing it came from.

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