Question
Which among the following is a numerical measurement
that is used to predict the chances of a business going bankrupt in the next two years.Solution
The Altman Z Score is used to predict the likelihood that a business will go bankrupt within the next two years. The formula is based on information found in the income statement and balance sheet of an organization. The Z score is based on the liquidity, profitability, solvency, sales activity, and leverage of the targeted business. Z Score is a useful metric for an outsider who has access to a company's financial statements. In its original form, the Z score formula is as follows: Z = 1.2A x 1.4B x 3.3C x 0.6D x 0.99E The letters in the formula designate the following measures: A = Working capital / Total assets [ Measures the relative amount of liquid assets] B = Retained earnings / Total assets [Determines cumulative profitability] C = Earnings before interest and taxes / Total assets [measures earnings away from the effects of taxes and leverage] D = Market value of equity / Book value of total liabilities [incorporates the effects of a decline in market value of a company's shares] E = Sales / Total assets [measures asset turnover]
Statement: A β€ D < C = B > E β₯ F < G
Conclusions: I. B > A
II. C < F
If βJβ stands for βΓ·β, βVβ stands for βΓβ, βKβ stands for β+β and βAβ stands for βββ, what will come in place of the...
Three of the given options are alike in a certain way. However, one option is not like the other three. Select the option which is different from the ot...
Select the Venn diagram that best illustrates the relationship between the following:
Tigers, Reptiles, Tortoises
1.Β
What should come in place of '?' in the given series?
77 Β 754Β ?Β 75224Β 752224Β 7522224Β 75222224
Three of the following four options are alike in a certain way and thus form a group. Which is the option that does NOT belong to that group?
(NO...
Five people, P, Q, R, S, and T, are sitting in a straight row, facing north. Q sits to the immediate left of S. Only three people sit between R and T. P...
In the question two statements are given, followed by two conclusions, I and II. You have to consider the statements to be true even if it seems to be ...
Read the given statement and conclusions carefully. Decide which of the given conclusions is/are definitely true from the statement.
Statement: M...
Select the option that is related to the third figure in the same way as the second figure is related to the first figure.