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Earnings quality and risk screens

Altman Z''

A four-ratio balance-sheet stress score (Z'' book-value variant, Altman 1983) that sorts companies into distress, grey and safe zones.

Formula

6.56×(working capital ÷ assets) + 3.26×(retained earnings ÷ assets) + 6.72×(EBIT ÷ assets) + 1.05×(book equity ÷ liabilities)

Served as: annual · derived. Annual and quarterly observations are never mixed unlabeled.

Where the inputs come from

  • Computed server-side from filed balance-sheet and income-statement concepts

Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.

How to compare it honestly

Read the zone, not the decimal; the variant was calibrated on manufacturers and emerging-market credits.

When it is not served

Not meaningful for banks and insurers, whose balance sheets the model was never calibrated for; sector misfit is labeled.

Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.

What it cannot tell you

A historical statistical screen, not a default prediction; inputs are book values with accounting lag.

Questions worth asking next

  • Which of the four components moved the score?
  • Does the debt maturity schedule corroborate or soften the zone reading?

Research prompts, not recommendations.

See it computed from filings

Related in earnings quality and risk screens: Piotroski F-score · Beneish M-score · Sloan accruals · Cash-flow backing of earnings · Receivables vs revenue · Inventory vs revenue

Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.

Educational content only. Not financial advice. TrendNalysis provides educational and informational financial analysis built from public SEC filings and economic data (FRED, BLS). It is not financial, investment, tax, or legal advice and is not a recommendation to buy or sell any security. Market pricing is not currently included. Past performance does not guarantee future results. Always do your own research and consult a licensed financial professional before investing.