MODEL B Z-SCORE Definition

Bookmark and Share

MODEL B Z-SCORE (For Private General Firm) Model B Z-Score is appropriate for a private general non-manufacturing firm. A Z-Score of 2.60 or above indicates that bankruptcy in not likely, buyt a Z-Score of 1.10 or below is a strong indicator that bankruptcy is likely. Probabilities of bankruptcy within the above ranges are 95% for one year and 70% within two years. A Z-Score between the two is the gray area. Obviously a higher Z-Score is desirable.

Learn new Accounting Terms

TOMBSTONE is a newspaper advertisement that contains the details of a bond issue or major loan, and the investment banks that have underwritten it.

SUBSCRIPTION, in securities, is an agreement to buy a new issue of securities.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.