Calculate the Altman Z-score
Enter a company's balance sheet and income figures for up to three years and choose the version that fits. See its Altman Z-score, zone and each ratio's contribution in a minute, then use the score as a rule in automated business credit decisions.
Z-score
In 2025, the score is 1.68 and is in the grey zone. With the other figures unchanged, EBIT of €4,526,907 instead of €300,000 would lift it to the safe line of 2.90.
Score by year
Bars show each year's score in its zone colour, and dashed lines mark where the distress and safe zones begin.
Ratio contributions
| Ratio | Weight | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| X1 · Working capital / total assets | 0.717 | 0.160 (0.11) | 0.105 (0.08) | 0.028 (0.02) |
| X2 · Retained earnings / total assets | 0.847 | 0.310 (0.26) | 0.286 (0.24) | 0.241 (0.20) |
| X3 · EBIT / total assets | 3.107 | 0.110 (0.34) | 0.067 (0.21) | 0.028 (0.09) |
| X4 · Equity / total liabilities | 0.42 | 0.786 (0.33) | 0.667 (0.28) | 0.543 (0.23) |
| X5 · Sales / total assets | 0.998 | 1.400 (1.40) | 1.295 (1.29) | 1.148 (1.15) |
| Score | 2.45 | 2.10 | 1.68 | |
| Zone | Grey | Grey | Grey |
The copied cells paste into a decision table as two columns, with the score range as the condition and the zone as the result.
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Use the score as a rule in the business credit decision, with exposure and your own policy considered together, and test each change on past applications. Start free
Show formulas
X1 = (Current assets − Current liabilities) ÷ Total assets X2 = Retained earnings ÷ Total assets X3 = EBIT ÷ Total assets X4 = Market value of equity / Book equity ÷ Total liabilities X5 = Sales ÷ Total assets Public manufacturer: Z = 1.2 X1 + 1.4 X2 + 3.3 X3 + 0.6 X4 + 1.0 X5 (1.81 / 2.99) Private company: Z′ = 0.717 X1 + 0.847 X2 + 3.107 X3 + 0.420 X4 + 0.998 X5 (1.23 / 2.90) Non-manufacturer / service: Z″ = 6.56 X1 + 3.26 X2 + 6.72 X3 + 1.05 X4 (1.10 / 2.60) EBIT to safe zone = EBIT + (Safe line − Z) ÷ X3 weight × Total assets
These are the published versions and zone lines. The score is a screen from the accounts, and it does not predict an individual company's outcome or make a credit decision.
Calculate the Altman Z-score
The Altman Z-score uses figures from a company's balance sheet and income statement. It combines ratios from those figures using coefficients from the selected published version.
The zone gives a screen of the company's accounts for a business credit decision. A lender can consider the score with the exposure and its own policy, then test policy changes on past applications.
Common questions
How do you calculate the Altman Z-score?
The Altman Z-score combines financial ratios from a company's accounts using coefficients from a published version. This calculator shows the score and zone for each year entered.
Which Altman Z-score version suits a private company?
Use the private-company version for a private company. The non-manufacturer version is also for service companies.
What do the Altman Z-score zones mean?
The safe, grey and distress zones are ranges set by the published version. They are a screen from the accounts and do not predict whether a particular company will fail.
What does each Altman Z-score ratio measure?
Each ratio relates a figure from the accounts to total assets or total liabilities. The table shows each ratio's contribution to the score.
How do lenders use the Altman Z-score in business credit?
A lender can use the score as one input to a business credit decision, alongside its own policy and the exposure. Policy changes can be tested on past applications.