Altman's Z score to forecast bond defaults does not include the ratio of
A) sales/total assets.
B) earnings before interest and taxes/total assets.
C) retained earnings/total assets.
D) sales/working capital.

Question

Quizplus · Accepted Answer

Altman's Z-score formula includes the ratios of sales/total assets, earnings before interest and taxes/total assets, and retained earnings/total assets, but it does not include the ratio of sales/working capital.

Altman's Z Score to Forecast Bond Defaults Does Not Include