Over the past couple of months, I have come to count on Edspira. They make me understand complex topics in a very easy and engaging manner -- be it ABC costing or equivalent units in Costing -- whatever. And now this Altman formula. Appreciated!!
They were carefully chosen by Professor Edward Altman through statistical analysis and empirical research to maximize the accuracy of predicting bankruptcy.
Over the past couple of months, I have come to count on Edspira. They make me understand complex topics in a very easy and engaging manner -- be it ABC costing or equivalent units in Costing -- whatever. And now this Altman formula. Appreciated!!
This video is very short but explains more than an hour video awesome
Thank you!
Used by auditors to present a disclaimer after they finish auditing a company’s financials.
The X4 is 0.6. How come it’s .99 here. Please explain for me. Am confused here. I want to understand
Why the 1.2; 1.4; 3.3; 0.9 and .6 on each bracket?
Did you find any answer i m looking for this question
those are the constants defined by Altman, different industries have different constants and you can find it on Altman's papers
They were carefully chosen by Professor Edward Altman through statistical analysis and empirical research to maximize the accuracy of predicting bankruptcy.
Great video! I was wondering are there any other models or ways in order to determine if a company is in financial distress?
Yes, the Piotroski F-score
@@joopschotsman5835 Yes. There's the Springate model and Fulmer model.
Sounds like all businesses are filing bankruptcy! Not many will score above 3
is Z score count as an optimization model?
Hi Yalda How are ya ?