Credit Rating Model Calculator (Z-Score)
This calculator is designed for corporate finance professionals to estimate credit ratings using the Z-Score model. It helps in assessing the financial health of a company by evaluating key financial metrics.
Interactive Z-Score Calculator
Results
Z-Score
N/A
Data Source and Methodology
All calculations are rigorously based on the Altman Z-Score model.
The Formula Explained
Z = 1.2 (Working Capital / Total Assets) + 1.4 (Retained Earnings / Total Assets) + 3.3 (EBIT / Total Assets) + 0.6 (Market Value of Equity / Total Liabilities) + 0.999 (Sales / Total Assets)
Glossary of Variables
- Working Capital: Current assets minus current liabilities.
- Total Assets: The total book value of a company's assets.
Frequently Asked Questions (FAQ)
What is the Z-Score model?
The Z-Score model is used to predict the probability of a company entering bankruptcy within the next two years.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
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Formula (extracted text)
Z = 1.2 (Working Capital / Total Assets) + 1.4 (Retained Earnings / Total Assets) + 3.3 (EBIT / Total Assets) + 0.6 (Market Value of Equity / Total Liabilities) + 0.999 (Sales / Total Assets)
Variables and units
- No variables provided in audit spec.
Sources (authoritative):
- CFPB — Credit cards (consumer education) — consumerfinance.gov · Accessed 2026-01-19
https://www.consumerfinance.gov/consumer-tools/credit-cards/ - FTC — Credit and loans (consumer advice) — consumer.ftc.gov · Accessed 2026-01-19
https://consumer.ftc.gov/ - Federal Reserve — Consumer resources — federalreserve.gov · Accessed 2026-01-19
https://www.federalreserve.gov/consumerscommunities.htm
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.