This is a question for financial accounting types. Years ago, i took a finance course, and I remember the section on financial ratios…these are numbers based on ratios…there are important ones like the “quick” ratio, inventory turns ratio, etc. As we know, these ratios yield a lot of good information about the financial health of a company.
Anyway, i recall the z ratio…and remember that it yiels info about impending bankruptcy…how isit calculated?
Explained: