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:

  • Net Revenues
  • Net Income from Operations
  • Interest Expense
  • Current Assets
  • Current Liabilities
  • Total Assets
  • Total Liabilities
  • Retained Earnings

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.

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