|
HOW
TO USE THE Z-SCORE CALCULATOR |
|
Created by Profit Coaching Inc.
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
ENTER NUMBERS FROM YOUR
BALANCE SHEET |
|
Read more about the
Z-score at: |
http://en.wikipedia.org/wiki/Z-Score_Financial_Analysis_Tool |
|
|
INTO THE YELLOW FIELDS
FOR THE MOST RECENT YEAR. |
|
|
|
|
|
|
|
Business Success/Failure
Potential Analysis |
|
|
|
|
|
2008 |
|
IF YOUR SCORE IS ABOVE
2.9: CONGRATULATIONS! |
|
|
|
|
|
|
|
|
Current
Assets |
Fill in the Yellow Blank
-> |
0 |
|
Now
might be a good time to consider borrowing for growth or expansion. The closer your |
|
Current Liabilities |
Fill in the Yellow Blank
-> |
0 |
|
score
is to 8.0, the better you will be able to weather contingencies. If you are right at, or just |
|
Working
Capital |
Result is calculated for you
-> |
0 |
|
above 2.6, you should
consider tightening up loose practices and maximizing your profits first. |
|
|
|
|
|
|
|
|
NET Annual Income From
Operations |
Fill in the Yellow Blank
-> |
0 |
|
Now is a good time to
plan for greater profit, profit sheltering and an exit strategy for |
|
|
Interest Expense |
Fill in the Yellow Blank
-> |
0 |
|
contingency, sale or
succession. A business coach can pay
for itself by helping you |
|
|
EBIT (Earnings before Int+Tax) |
Result is calculated for you
-> |
0 |
|
map out a course for
optimal profit extraction. |
|
|
|
|
|
|
|
|
|
Treasury Stock |
Fill in the Yellow Blank (Must be NEGATIVE value) -> |
0 |
|
IF YOUR SCORE IS BETWEEN
1.23 AND 2.9: THIS
IS YOUR WAKEUP CALL! |
|
|
Retained
Earnings |
Fill in the Yellow Blank
-> |
0 |
|
|
|
|
Total Retained Earnings |
Result is calculated for you
-> |
0 |
|
This
is no time to feel complacent. Inefficiencies and profit erosion can be
silently hurting |
|
|
|
|
|
you. Even if profits and sales look good, a
sudden or unexpected downturn in your score |
|
Total Assets |
|
Fill in the Yellow Blank
-> |
0 |
|
can put you at risk of
losing your business. |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
Fill in the Yellow Blank
-> |
0 |
|
Take action NOW to reduce
inefficiency and increase profits.
Look for deviations in all |
|
|
|
|
|
your ratios, examine
costs and inventory turnover, and tighten up accounts receivable cycles. |
|
Net Worth |
|
Result is calculated for you
-> |
0 |
|
|
|
|
|
|
|
|
|
If you think you are
operating at peak efficiency and don’t know what to do in order to improve |
|
Net Sales |
|
Fill in the Yellow Blank
-> |
0 |
|
your score, a business
coach can pay for itself by uncovering sources of hidden profit loss. |
|
|
|
|
|
|
|
|
|
|
Business
Success/Failure Potential - Z-Score Calculation |
|
IF YOUR SCORE IS BELOW
1.23: TIME AND
PROBABILITY ARE NOT ON YOUR SIDE! |
|
|
|
|
|
|
|
|
|
|
WC / Assets |
|
#DIV/0! |
|
|
Statistically,
there's an 80% chance you will go bankrupt within 2 years. You may have only |
|
Importance Factor |
0.717 |
|
|
a few weeks or months to
correct your situation. A complete overhaul of your business |
|
Net Weight |
|
|
#DIV/0! |
|
plan and practices can
pull you back from the brink in a
few weeks, but decisive action is |
|
|
|
|
|
|
necessary RIGHT NOW if
you do not want to end up a business statistic. Denial will not
improve |
|
EBIT
/ Assets |
#DIV/0! |
|
|
your odds. Decision and action
will. |
|
|
Importance Factor |
3.107 |
|
|
|
|
|
|
Net Weight |
|
|
#DIV/0! |
|
If you do not know where your biggest problems lie or how
to avert disaster, then investing |
|
|
|
|
|
|
in a business coach may
be the best way to protect your original investment. |
|
|
Ret. Earngs / Assets |
#DIV/0! |
|
|
|
Importance Factor |
0.847 |
|
|
Looking for a Business Coach? |
|
|
|
Net Weight |
|
|
#DIV/0! |
|
|
|
|
|
|
|
http://www.C2Cinternet.org |
|
|
N-Worth/ T-Liabilities |
#DIV/0! |
|
|
|
Importance Factor |
0.420 |
|
|
|
Net Weight |
|
|
#DIV/0! |
|
|
|
|
|
|
|
|
N-Sales/Total Assets |
#DIV/0! |
|
|
|
Importance Factor |
0.998 |
|
|
|
Net Weight |
|
|
#DIV/0! |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Z-Score Success/Failure
Potential |
|
#DIV/0! |
|
|
Failure
WITHIN 2 YEARS
> 2.9 = Low 1.23 to 2.9 = Possible < 1.23 = 80%
probability |
|
|
Failure
WITHIN 2 YEARS
> 2.9 = Low 1.23 to 2.9 = Possible < 1.23 = 70%
probability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|