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   Discuss if this information will be useful in predicting financial faliure

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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

  Discuss if this information will be useful in predicting financial faliure

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Step 1

Altman Z score is the formula which helps in predicting the probability of the business that it would go into bankruptcy within a span of 2 years.

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