Altman Z-Score for Private Companies Calculator

The Altman Z-Score for Private Companies is a modified version of the original Altman Z-Score formula, specifically designed to assess the financial health of privately-held businesses. Since private companies don' have publicly traded stock, this calculator uses book value of equity instead of market value, making it more appropriate for private company analysis.

This financial metric is calculated using five key ratios: working capital to total assets, retained earnings to total assets, earnings before interest and taxes (EBIT) to total assets, book value of equity to total liabilities, and sales to total assets. The resulting Z-Score helps predict the likelihood of financial distress, with scores above 2.9 indicating financial stability and scores below 1.23 suggesting potential financial problems.

This calculator is essential for business owners, investors, lenders, and financial analysts who need to evaluate the financial health of private companies. It's particularly useful for credit risk assessment, investment due diligence, and internal financial planning. By understanding your company's Z-Score, you can identify potential financial risks early and take proactive measures to improve your financial position.