You'll find that the following values have a mean of 12.17 and a standard deviation of 6.4. In it's most basic form, the z-score allows you determine how far (measured in standard deviations ...

This can be found by looking up the z-score in a standard normal distribution table or using statistical software. If you’re ...

Let us have a look at more detailed statistics in the below table. The annualized return for the top decile has been around 16.3% for the Z-score portfolio, compared to 9.6% for the S&P 500.

The formula for Altman Z-Score is 1.2*(working capital / total assets) + 1.4*(retained earnings / total assets) + 3.3*(earnings before interest and tax / total assets) + 0.6*(market value of ...