Will Your Company face Bankruptcy this year?
You may not know Edward Altman, but he knows an awful lot about your business — like whether your company
will be bankrupt in the next two years. Cool, right?
In the 1960’s Altman developed a corporate finance formula that would accurately predict business bankruptcy more than 90% of the time. The formula, Altman’s Z Score, needs just 8 numbers — and all of them can be found on your income statement or balance sheet.
How healthy is your business? Take the Z Score Test and find out for sure.
Edward Altman is a Professor of Finance at the Stern School of Business at New York University. He developed the Z Score formula in 1968, and it is still the best way to tell whether your company is on the brink of disaster. Though the formula was originally designed to predict business bankruptcy among public manufacturing companies, Altman has since designed variations that apply to privately held manufacturing companies (called the Z’ Score”) and non-manufacturing companies (the Z” Score). We highlight both below.
If your company engages in credit card processing, then you’re likely well acquainted with the complexity of deciphering a monthly credit card processing statement.
Last week when I finally decided to hire an accountant, I was up to my ankles in alligators. The last thing I wanted was the administrative nightmare of responding to resumes, scheduling interviews and sorting skillful accountants from the merely competent.
Last time we looked at nine 
I’m going to let you in on a secret: The best businesses—those that really boost the wealth and happiness of the business owner—are not built on intuition or luck.
That’s great for a financial analysis. But the best way to understand and appreciate the operational side of your business is to 
CASH CYCLE: (BALANCE SHEET)
