Calculator © - Free Online Calculators

Online Calculators since 2009

The Altman Z-score calculator allows you to calculate the z-score of a sample set of representational data to define the probability of risk in terms of financial health of a business and / or investment opportunities.

Raw Score (x): | |

Population Mean (μ): | |

Population Standard Deviation (σ): |

A Z-score, also known as the standard score, is a measurement of deviation used is statistics and probability to indicate the distance between an observation and the mean value of a group of integers.

Yes, a Z-Score can be negative. When a Z-score is negative it indicates that the score is below the mean, this is also known as a left tail z-score whereas a positive z-score is known as a right tail Z-score.

You can use the Z-Score Calculator above or use the following Z-Score Formula:

Z = (x - μ) / σ

Where:

**X**is the raw score (a single integer within the group of integers used in the mean or a separate integer for assessment)**μ**is the mean of the population. If you are not sure what the mean value is, you can use the Statistics Calculator to calculate the mean, medium and mode of a group of integers, this includes graphical representation of the group or the more detailed data analysis tool here which has more detail but does not include a graphical output.**σ**is the standard deviation of the population. The standard deviation of the population is is the measure used to quantify the amount of variation or dispersion in the data values.

The Z-score is a used in statistical analysis, typically by investors as a means of identifying the financial health of a specific company, group or associated trading stock. The advantage of the Z-score being that it allows for data sampling rather than full data analysis.

No, in fact the z-score was initially designed to be a more efficient means of identifying how close to bankruptcy a specific company was. The Z-score was created by Edward I. Altman, Professor of Finance, Emeritus, at the New York University Stern School of Business. Edward Altman published the "Altman Z-score" formula for predicting bankruptcy in 1968.

Studies have shown that the Alman Z-score formula has a reliability in the range of 80-90%. As such the Altman z-score has become a key tool in the portfolio of investment managers and hedge funds and leveraged to ascertain risk in certain investments and help shape their investment strategies and/or adjust interest rates when investing in higher risk companies (those who z-score indicates their financial health is not as good as it could be). The Altman Z-score can therefore be considered a statistical tool that allows visability of the probability of a certain event occurring based on a representational sample of data.

You may also find the following Math calculators useful.

- Graphic Calculator
- Aspect Ratio Calculator
- Radicals And Roots Calculator
- Acceleration Conversion
- Density Conversion Calculator
- Hexadecimal Calculator
- Arc Of Circle Calculator
- Logarithm Calculator
- Time Multiplication Calculator
- Golden Ratio Calculator
- Metric Units Conversion Calculator
- Tube Weight Calculator
- Volume Triangle Pyramid
- Grams Aluminium To Moles Calculator
- 2x2 Matrix Division Calculator
- Prism Calculator
- Absolute Difference Calculator
- Ratio Divider Calculator
- Weight Conversion Calculator
- Time Converter