Altman Z-Score and Z'-Score calculator

The two models this calculator runs

Z (public manufacturers): Z = 1.2·X1 + 1.4·X2 + 3.3·X3 + 0.6·X4 + 1.0·X5, where X4 is the market value of equity divided by total liabilities. The paper prints the weights in two forms. With X1 to X4 in percent (for example 20.0), the weights are 0.012, 0.014, 0.033, 0.006 and 0.999. With X1 to X4 in decimals (for example 0.20), the weights are 1.2, 1.4, 3.3, 0.6 and 1.0.

Z' (private firms): Z' = 0.717·X1 + 0.847·X2 + 3.107·X3 + 0.420·X4 + 0.998·X5, where X4 is the book value of equity divided by total liabilities. If book equity is negative, X4 is negative. The calculator shows the negative value and does not take an absolute value.

The paper's text layer has typos. It prints "1.2X," for the X1 weight and "14X2" for the X2 weight of the decimal Z model; the percent form printed on the line above ("0.014·X2") shows that the decimal weight of X2 is 1.4. The Z'-Score weights 0.717, 0.847, 3.107, 0.420 and 0.998 and the definition of X4 as book value of equity over book value of total liabilities are quoted from the same paper.

The 2014 paper also states a Z''-Score with a constant: Z'' = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4. This calculator does not compute it. Z'' uses the same book-equity X4 as Z', but it has a constant of 3.25 and no X5 term.

Source: Altman, Iwanicz-Drozdowska, Laitinen and Suvas, "Distressed Firm and Bankruptcy prediction in an international context: a review and empirical analysis of Altman’s Z-Score Model" (latest version, July 9, 2014), archived PDF.

Calculator

Enter amounts from one fiscal year's balance sheet and income statement, in any currency, all from the same period. Market capitalization is needed only for the Z model. Enter "1,000" as 1000: the calculator rejects numbers that contain commas or other separators rather than reading them as a smaller number.

The calculator rounds each ratio X1 to X5 to 4 decimals and each score to 3 decimals. It computes each score from the unrounded ratios.

Worked example, Playtika Holding Corp. fiscal year 2025 (form 10-K, filed 2026-02-26)

Every input value in the table below was fetched from the SEC company-facts file for Playtika (data.sec.gov company facts, CIK 0001828016) on 2026-10-19. EBIT is us-gaap:OperatingIncomeLoss; this is the rule of this calculator. Total liabilities is the us-gaap:Liabilities value from the filing. Playtika reports no us-gaap:Revenues tag for FY2025; the revenue line is tagged us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax. Book equity (us-gaap:StockholdersEquity) and retained earnings (us-gaap:RetainedEarningsAccumulatedDeficit) are negative, so X2 and X4 are negative; the calculator shows the negative values and does not take absolute values.

Ratios: X1 = 0.0258, X2 = −0.3364, X3 = −0.0014, X4 = −0.0996, X5 = 0.7409. Z' = 0.717(0.0258) + 0.847(−0.3364) + 3.107(−0.0014) + 0.420(−0.0996) + 0.998(0.7409) = 0.427. The Z-Score needs the market value of equity, which the XBRL company-facts file does not report, so this worked example states Z' only.

The paper links the Z-Score to publicly traded firms, the Z’-Score to private firms and the Z’’-Score to private manufacturing and non-manufacturing firms. It also says: "The original Z’-Score Model is estimated only for manufacturing firms." Playtika is not a manufacturer (SEC SIC code 7374), so this example shows the arithmetic only.

Reading the result

The 2014 paper tests the accuracy of the Z''-Score only. It gives no zone cut-off values for Z or Z', so this page does not label a result "safe" or "distressed". In Altman's 1968 sample all five ratios were higher on average for the firms that did not go bankrupt, and all weights of Z and Z' are positive, so a lower score is closer to the ratio pattern of the bankrupt firms. The paper notes that firms in different industries tend to report different levels of the same ratios, so compare a score with scores of firms in the same industry rather than with a fixed threshold.