hi,

can any one provide me the some site addresses where i can get detail about credit risk models?

I have a company for which i need to calculate altman z score model. can someone help me in this?

total current assets 66.3 M $
total non current assets 659.9 M $
total assets 904 M $
total current liab. 197.3 M $
total non current liab. 243.7 M $
total liab 473.0 M $
shareholder;s funds 546.7 M $
retained earnings 84.0 M $
shares on issue 547612
per share value 5.60 $
earning before int and tax 151.61 M $
sales 742.61 M $

can someone tell me about alman z score in this case?

thanks

The 5 financial ratios that affect the Altman Z-Score and how they factor in are:

1. EBIT (Earnings before Interest and Taxes) / Total Assets
2. Net Sales / Total Assets
3. Market Value of Equity / Total Liabilities
4. Working Capital/ Total Assets
5. Retained Earnings / Total Assets

(each should range from -4 to +8.0)

These ratios are multiplied by the weightage as below, and the results are added together.

Z-Score = 1st x 3.3 + 2nd x 0.99 + 3rd x 0.6 + 4th x 1.2 + 5th x 1.4

The Interpretation of Z Score:

Z-SCORE ABOVE 3.0 -The company is safe based on these financial figures only.

Z-SCORE BETWEEN 2.7 and 2.99 - On Alert. This zone is an area where one should exercise caution.

Z-SCORE BETWEEN 1.8 and 2.7 - Good chances of the company going bankrupt within 2 years of operations from the date of financial figures given.

Z-SCORE BELOW 1.80- Probability of Financial "embarassment" is very high.

Hope this helps!