What is Altman Score?
Altman Score A credit-strength and bankruptcy risk indicator for companies, calculated using a weighted combination of financial ratios. Widely applied in financial analysis for distress prediction and credit risk assessment.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Altman Score” Used in Practice?
The company’s Altman Score fell below 1.8, indicating a heightened risk of bankruptcy according to standard credit analysis benchmarks.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Altman Score?
A credit-strength and bankruptcy risk indicator for companies, calculated using a weighted combination of financial ratios. Widely applied in financial analysis for distress prediction and credit risk assessment.
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