|
Z-Score Financial Analysis Tool
Example of an Excel spreadsheet that uses Altman Z-score to predict the probability that a firm will go into bankruptcy within two years ">bankruptcy.html" ;"title="probability that a firm will go into bankruptcy">probability that a firm will go into bankruptcy within two years The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years. Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company. The formula The Z-score is a linear combination of four or five common business ratios, weighted by coefficients. The coefficients were estimated by identifying a set ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Standard Score
In statistics, the standard score is the number of standard deviations by which the value of a raw score (i.e., an observed value or data point) is above or below the mean value of what is being observed or measured. Raw scores above the mean have positive standard scores, while those below the mean have negative standard scores. It is calculated by subtracting the population mean from an individual raw score and then dividing the difference by the population standard deviation. This process of converting a raw score into a standard score is called standardizing or normalizing (however, "normalizing" can refer to many types of ratios; see normalization for more). Standard scores are most commonly called ''z''-scores; the two terms may be used interchangeably, as they are in this article. Other equivalent terms in use include z-values, normal scores, standardized variables and pull in high energy physics. Computing a z-score requires knowledge of the mean and standard dev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Washington Mutual Bank
Washington Mutual (often abbreviated to WaMu) was the United States' largest savings and loan association until its collapse in 2008. A savings bank holding company is defined in United States Code: Title 12: Banks and Banking; Section 1842: Definitions; Subsection (l): Savings Bank Holding Company See: On Thursday, September 25, 2008, the United States Office of Thrift Supervision (OTS) seized Washington Mutual’s banking operations and placed it into receivership with the Federal Deposit Insurance Corporation (FDIC). The OTS took the action due to the withdrawal of $16.7 billion in deposits during a 9-day bank run (amounting to 9% of the deposits it had held on June 30, 2008). The FDIC sold the banking subsidiaries (minus unsecured debt and equity claims) to JPMorgan Chase for $1.9 billion, which had been considering acquiring WaMu as part of a plan internally nicknamed “Project West.” All WaMu branches were rebranded as Chase branches by the end of 2009. The holding ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Risk
A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial. In an efficient market, higher levels of credit risk will be associated with higher borrowing costs. Because of this, measures of borrowing costs such as yield spreads can be used to infer credit risk levels based on assessments by market participants. Losses can arise in a number of circumstances, for example: * A consumer may fail to make a payment due on a mortgage loan, credit card, line of credit, or other loan. * A company is unable to repay asset-secured fixed or floating charge debt. * A business or consumer does not pay a trade invoice when due. * A business does not pay an employee's earned wages when due. * A business or government bond issuer does not make a payment on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankrupt is not the only legal status that an insolvent person may have, and the term ''bankruptcy'' is therefore not a synonym for insolvency. Etymology The word ''bankruptcy'' is derived from Italian ''banca rotta'', literally meaning "broken bank". The term is often described as having originated in renaissance Italy, where there allegedly existed the tradition of smashing a banker's bench if he defaulted on payment so that the public could see that the banker, the owner of the bench, was no longer in a condition to continue his business, although some dismiss this as a false etymology. History In Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants were forced into " ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Ratios
A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios. Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percent value, such as 10%. Some ratios are usually quoted as percentages, especially ratios that are usually or always less than 1, such as earnings yield, while others are usually quoted as decimal numbers, especially ratios that are usually ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Wiley & Sons
John Wiley & Sons, Inc., commonly known as Wiley (), is an American multinational publishing company founded in 1807 that focuses on academic publishing and instructional materials. The company produces books, journals, and encyclopedias, in print and electronically, as well as online products and services, training materials, and educational materials for undergraduate, graduate, and continuing education students. History The company was established in 1807 when Charles Wiley opened a print shop in Manhattan. The company was the publisher of 19th century American literary figures like James Fenimore Cooper, Washington Irving, Herman Melville, and Edgar Allan Poe, as well as of legal, religious, and other non-fiction titles. The firm took its current name in 1865. Wiley later shifted its focus to scientific, technical, and engineering subject areas, abandoning its literary interests. Wiley's son John (born in Flatbush, New York, October 4, 1808; died in East Orange, New Je ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New York University Stern School Of Business
The New York University Leonard N. Stern School of Business (commonly referred to as NYU Stern, The Stern School of Business, or simply Stern) is the business school of New York University, a private research university based in New York City. It was founded in 1900. It is located on Gould Plaza next to the Courant Institute of Mathematical Sciences and the economics department of the College of Arts and Sciences. Stern is a founding member of the Association to Advance Collegiate Schools of Business. Established as the School of Commerce, Accounts and Finance, the school changed its name in 1988 in honor of Leonard N. Stern, an alumnus and benefactor of the school. The school offers Bachelor of Science in Business at the undergraduate level and Master of Business Administration degrees at the postgraduate level. Consistently ranked among the best business schools, Stern was ranked 1st among US schools for careers in finance on Wall Street in 2018, accounting for 3.9% of hires ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ohlson O-score
The Ohlson O-score for predicting bankruptcy is a multi-factor financial formula postulated in 1980 by Dr. James Ohlson of the New York University Stern Accounting Department as an alternative to the Altman Z-score for predicting financial distress. Calculation of the O-score The Ohlson O-score is the result of a 9-factor linear combination of coefficient-weighted business ratios which are readily obtained or derived from the standard periodic financial disclosure statements provided by publicly traded corporations. Two of the factors utilized are widely considered to be dummies as their value and thus their impact upon the formula typically is 0. When using an O-score to evaluate the probability of company’s failure, then exp(O-score) is divided by 1 + exp(O-score). The calculation for Ohlson O-score appears below: : \begin T = & -1.32 - 0.407\log(TA_t/GNP) + 6.03\frac - 1.43\frac + 0.0757\frac \\0pt& - 1.72 X - 2.37\frac - 1.83\frac + 0.285Y - 0.521\frac \end ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Z-factor
The Z-factor is a measure of statistical effect size. It has been proposed for use in high-throughput screening (where it is also known as Z-prime), and commonly written as Z' to judge whether the response in a particular assay is large enough to warrant further attention. Background In high-throughput screens, experimenters often compare a large number (hundreds of thousands to tens of millions) of single measurements of unknown samples to positive and negative control samples. The particular choice of experimental conditions and measurements is called an assay. Large screens are expensive in time and resources. Therefore, prior to starting a large screen, smaller test (or pilot) screens are used to assess the quality of an assay, in an attempt to predict if it would be useful in a high-throughput setting. The Z-factor is an attempt to quantify the suitability of a particular assay for use in a full-scale, high-throughput screen. Definition The Z-factor is defined in te ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Z-test
A ''Z''-test is any statistical test for which the distribution of the test statistic under the null hypothesis can be approximated by a normal distribution. Z-tests test the mean of a distribution. For each significance level in the confidence interval, the ''Z''-test has a single critical value (for example, 1.96 for 5% two tailed) which makes it more convenient than the Student's ''t''-test whose critical values are defined by the sample size (through the corresponding degrees of freedom). Both the Z test and Student's t-test have similarities in that they both help determine the significance of a set of data. However, the z-test is rarely used in practice because the population deviation is difficult to determine. Applicability Because of the central limit theorem, many test statistics are approximately normally distributed for large samples. Therefore, many statistical tests can be conveniently performed as approximate ''Z''-tests if the sample size is large or the populat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Crore
A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is equal to one hundred thousand, and is written as 1,00,000). It is widely used both in official and other contexts in Afghanistan, Bangladesh, Bhutan, India, Myanmar, Nepal, Pakistan, and Sri Lanka. It is often used in Bangladeshi, Indian, Pakistani, and Sri Lankan English. Money Large amounts of money in Bangladesh, India, Nepal, and Pakistan are often written in terms of ''Koti'' or ''crore''. For example (one hundred and fifty million) is written as "fifteen ''crore'' rupees", "15 crore" or "". In the abbreviated form, usage such as "15 cr" (for "15 ''crore'' rupees") is common. Trillions (in the short scale) of money are often written or spoken of in terms of ''lakh crore''. For example, ''one trillion rupees'' is equivalent to: * ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MF Global
MF Global, formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-dealer subsidiary, was a primary dealer in United States Treasury securities. A series of perceived liquidity problems and large fines and penalties dogged MF Global starting in 2008, and led to its bankruptcy in 2011. In 2011, MF Global faced major pressures to its liquidity over several months. Some analysts and financial commentators indicate that MF Global probably experienced a number of trading days in 2011 during which the firm's bets on sovereign debt would have required the use of customer funds to meet capital requirements, thereby maintaining operating funds and possibly overall solvency. A large par ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
.png "Click for more on -> Bankruptcy")
