Question

In: Finance

Which of the following concepts is not captured by one of the variables in Altman's Z-Score?...

Which of the following concepts is not captured by one of the variables in Altman's Z-Score?

A.

Current level of efficiency
B.

Current level of profitability
C.

Current level of net operating assets
D.

Current level of liquidity

Solutions

Expert Solution

The Altman Z-score is the output of a credit-strength test that gauges a publicly-traded manufacturing company's likelihood of bankruptcy. The Altman Z-score is based on five financial ratios that can calculate from data found on a company's annual report. It uses profitability, leverage, liquidity, solvency, and activity to predict whether a company has a high probability of becoming insolvent.

Hence ANSWER "A " Current level of efficiency

jeff jeffy answered 2 years ago
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