Bugs
0
Not a bug
Two Altman Z Score Problems
1. Market Value of Equity uses K ($Thousands) rather than B ($Billions) for TTM (trailing twelve months).
2. Delete MRQ calculations. Z Scores should only be used for 12-month periods -- X3(EBIT) and X5(Sales) are understated if use only 3-month values.
Customer support service by UserEcho
1) fixed.
2) 3 month numbers are included to compare between short term last quarter figures vs LTM figures.
I think you missed my point. Altman Z scores require 12-month time periods.
The underlying reason for this is that variables X3(EBIT) and X5(Sales) for only 3 months cannot be compared to EBIT and Sales for 12 months.
Therefore, please delete MRQ Z score info.
Please reply to comment from 1 week ago regarding inaccuracy of calculating Altman Z for anything other than 12-month periods.
Jeff,
Sorry but we are not going to delete this. EBIT is divided by 4 for the latest MRQ. It is a good approximation of how the company is doing vs the past year.