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Altman Z-Score Interpretation

April 11, 2017

A score below 1.8 implies the company is headed for bankruptcy.

A score above 3.0 implies the company is not likely to go bankrupt.

A score between 1.8 and 3.0 is inconclusive but traders may purchase a stock when its Altman Z-score approaches 3.0 and short a stock when its Altman Z-score approaches 1.8

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