MODEL B Z-SCORE Definition

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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.

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ACTUALS is jargon used when speaking of an actual number experienced through some point in time as opposed to a number that is budgeted or projected into the future, e.g., year-to-date sales, expenses, product produced, etc.

STAND-ALONE is where the subject is capable of operating or is intended to be viewed independently. For example, a. a pc can be connected to a network, but it also has a "stand-alone" capability where the user can work locally on his/her pc without interacting with the network; or, b. a sales forecast for multiple product models or categories is a "blended" forecast, but if you were to break the forecast out by individual models or category, you would have a "stand-alone" forecast for each.

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