Abstract
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 covering 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.
Document Type
Article
Publication Date
Summer 2006
Publisher Statement
Copyright © 2006 Financial Education Association. This article first appeared in the Journal of Financial Education 32 (Summer 2006): 97-102.
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Recommended Citation
Arnold, Tom, and John H. Earl, Jr. "Applying Altman's Z-Score in the Classroom." Journal of Financial Education 32 (Summer 2006): 97-102.
Included in
Finance and Financial Management Commons, Management Sciences and Quantitative Methods Commons