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HOW
TO USE THE Z-SCORE CALCULATOR |
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ENTER NUMBERS FROM YOUR
BALANCE SHEET |
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Read more about the
Z-score at: |
http://en.wikipedia.org/wiki/Z-Score_Financial_Analysis_Tool |
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INTO THE YELLOW FIELDS
FOR THE MOST RECENT YEAR. |
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Business Success/Failure
Potential Analysis |
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2008 |
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IF YOUR SCORE IS ABOVE
2.6: CONGRATULATIONS! |
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Current
Assets |
Fill in the Yellow Blank
-> |
0 |
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Now
might be a good time to consider borrowing for growth or expansion. The closer your |
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Current Liabilities |
Fill in the Yellow Blank
-> |
0 |
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score
is to 8.0, the better you will be able to weather contingencies. If you are right at, or just |
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Working
Capital |
Result is calculated for you
-> |
0 |
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above 2.6, you should
consider tightening up loose practices and maximizing your profits first. |
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NET Annual Income From
Operations |
Fill in the Yellow Blank
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0 |
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Now is a good time to
plan for greater profit, profit sheltering and an exit strategy for |
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Interest Expense |
Fill in the Yellow Blank
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0 |
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contingency, sale or
succession. A business coach can pay
for itself by helping you |
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EBIT (Earnings before Int+Tax) |
Result is calculated for you
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0 |
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map out a course for
optimal profit extraction. |
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Treasury Stock |
Fill in the Yellow Blank (Must be NEGATIVE value) -> |
0 |
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IF YOUR SCORE IS BETWEEN
1.1 AND 2.6: THIS
IS YOUR WAKEUP CALL! |
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Retained
Earnings |
Fill in the Yellow Blank
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0 |
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Total Retained Earnings |
Result is calculated for you
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0 |
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This
is no time to feel complacent. Inefficiencies and profit erosion can be
silently hurting |
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you. Even if profits and sales look good, a
sudden or unexpected downturn in your score |
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Total Assets |
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Fill in the Yellow Blank
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0 |
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can put you at risk of
losing your business. |
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Total Liabilities |
Fill in the Yellow Blank
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0 |
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Take action NOW to reduce
inefficiency and increase profits.
Look for deviations in all |
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your ratios, examine
costs and inventory turnover, and tighten up accounts receivable cycles. |
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Net Worth |
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Result is calculated for you
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0 |
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Business
Success/Failure Potential - Z-Score Calculation |
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If you think you are
operating at peak efficiency and don’t know what to do in order to improve |
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your score, a business
coach can pay for itself by uncovering sources of hidden profit loss. |
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WC / Assets |
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#DIV/0! |
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Importance Factor |
6.560 |
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IF YOUR SCORE IS BELOW
1.1: TIME AND
PROBABILITY ARE NOT ON YOUR SIDE! |
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Net Weight |
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#DIV/0! |
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Statistically,
there's an 80% chance you will go bankrupt within 2 years. You may have only |
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EBIT
/ Assets |
#DIV/0! |
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a few weeks or months to
correct your situation. A complete overhaul of your business |
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Importance Factor |
6.720 |
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plan and practices can
pull you back from the brink in a
few weeks, but decisive action is |
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Net Weight |
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#DIV/0! |
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necessary RIGHT NOW if
you do not want to end up a business statistic. Denial will not
improve |
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your odds. Decision and action
will. |
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Ret. Earngs / Assets |
#DIV/0! |
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Importance Factor |
3.260 |
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If you do not know where your biggest problems lie or how
to avert disaster, then investing |
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Net Weight |
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#DIV/0! |
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in a business coach may
be the best way to protect your original investment. |
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N-Worth/ T-Liabilities |
#DIV/0! |
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Looking for a Business Coach? |
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Importance Factor |
1.050 |
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Net Weight |
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#DIV/0! |
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http://www.C2Cinternet.org |
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Z-Score Success/Failure
Potential |
#DIV/0! |
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Failure
WITHIN 2 YEARS
> 2.6 = Low 1.1 to 2.6 = Possible < 1.1 = 80%
probability |
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Failure
WITHIN 5 YEARS
> 2.6 = Low 1.1 to 2.6 = Possible < 1.1 = 70% probability |
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