Compute and interpret altman z-scores

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Compute and Interpret Altman's Z-scores Following is selected financial information for eBay Inc., for its fiscal years 2016 and 2015. (In millions, except per share data) 2016 2015 Current assets $ 8,875 $ 7,904 Current liabilities 3,847 2,263 Total assets 23,847 17,755 Total liabilities 13,308 11,179 Shares outstanding 530 741 Retained earnings 14,959 7,713 Stock price per share 29.69 27.48 Sales 8,979 8,592 Earnings before interest and taxes 2,325 2,197 Compute and interpret Altman Z-scores for the company for both years. (Do not round until your final answer; then round your answers to two decimal places.) 2016 z-score = Answer 2015 z-score = Answer Which of the following best describes the company's likelihood to go bankrupt given the z-score in 2015 compared to 2016. The z-score in 2016 decreased slightly. Z-scores for both years are in the gray area indicating some risk of bankruptcy. The z-score in 2016 increased slightly, which suggests the company's risk of bankruptcy has increased. The z-score in 2016 increased slightly. Z-scores for both years are in the gray area indicating some risk for bankruptcy The z-score in 2016 decreased slightly, which suggests the company's risk of bankruptcy has decreased.

Reference no: EM131954686

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