Applying Altman's Z-Score in the Classroom
11 Pages Posted: 3 Jul 2005
Date Written: June 15, 2005
Altman's Z-score is introduced in an Excel framework to produce a quick calculation of the Z-score with actual financial data available through the Internet. The lesson plan developed is easily introduced with topics concerning ratio analysis, financial risk, bond rating changes, and bankruptcy. Given the wide use of the Z-score in practice to evaluate credit risk (or bankruptcy risk), the lesson plan produces a skill set that is very marketable.
Keywords: Z-Score, bankruptcy, pedogogy, excel, ratio analysis
JEL Classification: G30, G33, A0
Suggested Citation: Suggested Citation