OASIS CORPORATE PARK | CENTUM | MEDALLA | MERITUS, Ara Damansara is set to BOOM further (Investment)
A mathematical model that uses financial ratios and eight variables to identify whether a company has manipulated its earnings. The variables are constructed from the data in the company's financial statements and, once calculated, create an M-Score to describe the degree to which the earnings have been manipulated.
DEFINITION of 'Altman Z-Score'. The output of a credit-strength test that gauges a publicly traded manufacturing company's likelihood of bankruptcy. The Altman Z-score, is based on five financial ratios that can be calculated from data found on a company's annual 10K report. The Altman Z-score is calculated as follows: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E.