Balance Sheet

Financial Resilience and Business Sustainability

Altman Z-Score

The Altman Z-Score is a composite indicator designed to assess the likelihood of financial distress by combining measures of liquidity, profitability, leverage, solvency, and operating efficiency. It serves as an early warning signal of bankruptcy risk and is particularly relevant for manufacturing and asset-based businesses. Rather than focusing on a single weakness, the Z-Score evaluates whether multiple financial dimensions are collectively strong enough to support ongoing operations under stress.