Altman Z Score 2018 2019 2020 BHP 0.80 0.71 0.63 FMG 1.12 1.26 1.38 RIO 1.36 1.34 1.34 Comment on the findings of each company and is it useful in predicting financial failure
Altman Z Score 2018 2019 2020 BHP 0.80 0.71 0.63 FMG 1.12 1.26 1.38 RIO 1.36 1.34 1.34 Comment on the findings of each company and is it useful in predicting financial failure
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
|
Altman Z Score |
|||
|
|
2018 |
2019 |
2020 |
|
BHP |
0.80 |
0.71 |
0.63 |
|
FMG |
1.12 |
1.26 |
1.38 |
|
RIO |
1.36 |
1.34 |
1.34 |
Comment on the findings of each company and is it useful in predicting financial failure
Expert Solution
Step 1
The formula for Altman Z-Score
Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
where,
A = working capital / total assets
B = retained earnings / total assets
C = earnings before interest and tax / total assets
D = market value of equity / total liabilities
E = sales / total assets
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