notices - See details
Notices
A
AtulSave (not verified)
4th February 2016 | 4:46am

As per Prof. Altman's Z score model, Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + .999X5; wherein X1, X2, X3, X4 and X5 are related to Working Capital, Retained Earnings, Earnings Before Interest and Taxes (Return on asset), Market Value of Equity and Sales respectively. This indicates ranking in order of importance as Return on asset, Retained earnings, Working capital, Sales and Equity market value, however, as per the interview, the order is Return on assets, Retained earnings, Market value equity, Sales and then working capital. Is there any change in the scoring model?