Financial and business terms

Z SCORE

Z score: translation

Statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. Separately, z score is the output from a credit-strength test that gauges the likelihood of bankruptcy.The New York Times Financial Glossary
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One of the oldest and most well-known insolvency prediction formulas. The Z score, developed by Dr. Robert Altman, is a financial model that uses historical financial data to calculate a score. The Z score successfully predicts bankruptcy with well over 90 percent accuracy using data from one year prior and is over 70 percent accurate using data from as many as five years prior to bankruptcy. Other financial models claim even higher accuracy levels.American Banker Glossary
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Statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. Separately, Z score is the output from a credit-strength test that gauges the likelihood of bankruptcy.Bloomberg Financial Dictionary
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Statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. Also, the output from a credit-strength test that gauges the likelihood of bankruptcy.Chicago Mercantile Exchange Glossary