Z score

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Related to Z-Score Model: Altman Z Score

Z score

Statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. Separately, Z score is the output from a credit-strength test that gauges the likelihood of bankruptcy.

Z Score

In statistics, the number of standard deviations a data point is from the mean value. Measuring the Z-score of a company is used to help determine a company's likelihood of bankruptcy.
References in periodicals archive ?
Table 11 summarizes classification result of new Z-Score model.
Agarwal and Taffler (2005) tested the predictive power of Altman's Z-score model over the period of twenty five years from 1979 to 2003 in UK.
Model 2 is authors, and has been named All Variables Z-Score Model. It comprises of thirteen financial and four non-financial predictor variables.
The following UK-based z-score model of Taffler (1983, 1984) and Agarwal and Taffler (2007) employed in this study is derived in a similar way to Altman (1968) using a discriminant modeling approach:
Interpretation of Z-score model Category Z-score value Inference/Implications I Below 1.81 Distress Zone /Bankruptcy zone II 1.81-2.99 Grey Zone III Above 2.99 Safe Zone Financial Analysis of MARKFED and HAFED
After publishing the model, a discussion on how the Z-score model could be used for "nonstock companies" started.
This amount would then be used to calculate the X4 variable in the Z-score model.
Accordingly, numbers of meaningful ratios are used to build a Z-Score model for monitoring public enterprise transitional performance in the textile sector in Egypt.
Similarly, Mulla (2002) made a study in textile mill with the help of Z score model for evaluating the financial health with five weighted ratios and afterward Ritu (2002) made a comprehensive attempt to assess the financial health of public sector units in India by applying Altman's Z-score model. Data was collected for the period of 10 years for the sample of 24 public limited companies.
If you rely on the Z-score model to tell you whether Salton is a risky customer or not, you have to conclude that it is a good credit risk as of the end of its fiscal 1999 year.
Altman took the traditional Z-score model and removed all of the biases he found.