What is in the score?
What is in the score?
What is in the score ?
The Z-score is reported as a number. The higher the number the lower the risk.
Typically, scores are determined by reviewing the following data from your P & L Statement and Balance Sheet:
What's a good score ?
Overall, a score of 3 or above is a sign that continued growth and success is very probable. Businesses with scores of 3 or higher will, all things considered, have a good chance of obtaining quality loans at the best interest rates.
Scores between 3 and 1 may point to troubled areas that creditors will want to look at and review. A lender may reject a loan or demand additional personal guarantees before a loan will be approved.
With scores below 1, companies may find they cannot obtain a loan. Scores below this threshold are considered to be an indicator of great risk and that bankruptcy is almost certain.
Everything you measure improves. Take a few minutes to find out your Z-score now.