UK Accounting Glossary
The Z Score is a multivariate formula used to gauge a business’s susceptibility to failure.
The Z Score is a multivariate formula, first devised in 1968 by Edward I. Altman (Assistant Professor of Finance at New York University), that aims to gauge the susceptibility of a business to failure.
An entity’s score is calculated by applying beta coefficients to a number of selected ratios taken from an organisation’s final accounts using the multiple discriminant analysis technique.
In 1983, A UK-based version of the Z score was introduced by Richard J. Taffler – who is a professor of finance and accounting at Warwick Business School.
A multivariate formula, first devised by Edward I. Altman in 1968.
It attempts to measure the susceptibility of a business to failure.
A UK version of the Z score was introduced by Richard J. Taffler in 1983.
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This glossary post was last updated: 27th January 2019.