Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• Z SCORE
  
  One of the oldest and most well-known insolvency prediction formulas. The Z score, developed by Dr. Robert Altman, is a financial model that uses historical financial data to calculate a score. The Z score successfully predicts bankruptcy with well over 90 percent accuracy using data from one year prior and is over 70 percent accurate using data from as many as five years prior to bankruptcy. Other financial models claim even higher accuracy levels.
  
  Back