Predicting the Financial Health of Companies Using the Altman Z-score

In our paper is used Altman Z-score as measurement tool to assess a company's financial condition. Business managers use the Altman Z-score to raise capital and secure credit. Altman Z-score is an effective tool to demonstrate the ability to pay for bankers and a sound business model for investors. Altman Z-score is a critical business tool managers use to assess their financial health. It helps managers align business strategy, the decision on the allocation of capital and to ensure the transparency of the financial status to lenders and equity providers. The Altman Z-score highlights factors that contribute to the financial health of companies and reveals new trends that indicate improvement or worsening fmancial situation. Altman Z-score is valuable tools for managing the assets assess the financial balance sheet of the company, to reveal factors that emphasize balance and initiate measures to improve creditworthiness and financial wellness company. All business decisions and actions are finally revealed in the balance sheet of the company. From the Altman Z-score to measure the effectiveness of business decisions. This enables administrators to anticipate on going changes in the creditworthiness and actively manage changes in financial position.