Question

In the Altman Z Score model , a company with a Z Score of 1.7 is classified in the financial distress zone . If a company’s Z Score increases from 1.7 to 2.9 over a two-year period, this indicates that the company has likely moved from a high-risk zone to a ________ zone, suggesting a reduction in the probability of bankruptcy.

A Safe
B Risk
C Recovery
D Vulnerable
E Critical
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