Within Altman's Z score model of predicting bankruptcy,working capital is included in the model.If working capital increases what affect does that have on the probability of the firm being in bankruptcy?

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Within Altman's Z score model, working capital is one of the multiple factors considered for predicting bankruptcy. An increase in working capital means that the company has more liquid resources to meet its short-term obligations, which reduces the likelihood of default and, therefore, decreases the probability of the firm being in bankruptcy.

Within Altman's Z Score Model of Predicting Bankruptcy,working Capital Is