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phiestklas
phiestklas phiestklas
  • 25-06-2016
  • Mathematics
Answered

What are Z- and Z2-scores?

Verified Answer :

Sksourav
Sksourav Sksourav
  • 25-06-2016

The Z-Score is a shorthand to describe the financial health of a company, and its likelihood of financial distress. If the Z Score is falling towards 1.8 then it may be a sell signal. Z2 is the Z-Score for non-manufacturing companies (but excluding property/financial companies) and this version is calculated based using the latest available interim financials.

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