Interpretation of the z-score concentrates

Assignment Help Accounting Basics

Reference no: EM131048958

Robertson identifies four main elements which cause changes in the financial health of a company: trading stability; declining profits; declining working capital; increase in borrowings.36 Robertson's Z-score is represented by:

Where

Interpretation of the Z-score concentrates on rate of change from one period to the next. If the score falls by 40% or more in any one year, immediate investigations must be made to identify and rectify the cause of the decrease in Z-score. If the score falls by 40% or more for two years running, the company is unlikely to survive. Compare and contrast Robertson's Z-score with:

(i) Altman's Z-score;

(ii) Taffler's Z-score and PAS-score.

Reference no: EM131048958

Questions Cloud

Standard normal random variable : Given that z is astandardNormal random variable, find the following probabilities:

What are the pros and cons of key escrow : Learn about a key escrow encryption scheme (for example, Clipper). What are the pros and cons of key escrow?

Output in a fixed exchange rate regime : To what extent can monetary policy be used to affect output in a fixed exchange rate regime? Explain.

Identify importance of the iom future of nursing report : Discuss the work of the Robert Wood Johnson Foundation Committee Initiative on the Future of Nursing and the Institute of Medicine research that led to the IOM report, "Future of Nursing: Leading Change, Advancing Health.

Interpretation of the z-score concentrates : Robertson identifies four main elements which cause changes in the financial health of a company: trading stability; declining profits; declining working capital; increase in borrowings.36 Robertson's Z-score is represented by:

Show that it implies c = m3 mod n1n2n3 : The Chinese remainder theorem implies that you can efficiently find a c such that c = c1 mod n1, c = c2 mod n2, and c = c3 mod n3. Assume this, and show that it implies c = m3 mod n1n2n3. Then note m3 1n2n3.

Piece of property it already owns : A bank is considering building a branch on a piece of property it already owns. Which of the following cash flows should not be considered in the capital budgeting analysis? The: $50,000 the firm will forgo in lost revenue from the sale of the pro..

Exploiting and trapping vulnerable low-income customers : It was reported in November 2015 in the press that Cash Converters, a public company listed on the Australian Stock Exchange was accused of exploiting and trapping vulnerable low-income customers in a cycle of debt by charging extortionate interes..

Define abbreviations at first use in the abstract : Define abbreviations at first use in the abstract. Indicate the theoretical or experimental plan used. Summarize the principle findings and point out major conclusions. Include chemical safety information when applicable

User Account

All Pages