Statistical measure that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. Separately, Z score is the output from a credit-strength test that gauge [..]

The Z score is a a bankruptcy-prediction model introduced by New York University professor Edward Altman in 1968. The Z score's formula assigns values to five financial ratios to gauge how likely it is that a manufacturing or industrial firm will go bankrupt.

A score that is produced by subtracting the mean value from an individual data value and dividing by the standard deviation. This standardizes data values and allows for individual data values from di [..]

The Z score indicates the probability of a company entering bankruptcy within the next two years.

The z-score looks at how likely it is that a bank will become bankrupt. It is a formula that puts a value on five financial ratios. It was determined by professor Edward Altman at the New York University in 1968.