Is there any metric offered by WL8 that is remotely close to the Altman Z-Score?
Understanding the Altman Z-Score
Invented by New York University Professor Edward I. Altman in 1968, the Z-Score is a financial model that predicts the probability of a company entering bankruptcy within a two-year time frame. The Altman Z-Score combines five different financial ratios, each weighted to create a final score. A score below 1.8 suggests a high likelihood of financial distress, while a score above 3 indicates a low risk.
ζ = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
Zeta (ζ) is the Altman’s Z-score
A is the Working Capital/Total Assets ratio
B is the Retained Earnings/Total Assets ratio
C is the Earnings Before Interest and Tax/Total Assets ratio
D is the Market Value of Equity/Total Liabilities ratio
E is the Total Sales/Total Assets ratio
Understanding the Altman Z-Score
Invented by New York University Professor Edward I. Altman in 1968, the Z-Score is a financial model that predicts the probability of a company entering bankruptcy within a two-year time frame. The Altman Z-Score combines five different financial ratios, each weighted to create a final score. A score below 1.8 suggests a high likelihood of financial distress, while a score above 3 indicates a low risk.
ζ = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
Zeta (ζ) is the Altman’s Z-score
A is the Working Capital/Total Assets ratio
B is the Retained Earnings/Total Assets ratio
C is the Earnings Before Interest and Tax/Total Assets ratio
D is the Market Value of Equity/Total Liabilities ratio
E is the Total Sales/Total Assets ratio
Rename
Quoting from https://www.investopedia.com/terms/a/altman.asp
So it's a matter of subscribing to a supported fundamental data provider that returns these event items (capital, assets etc.) and making some basic math on the event data series in WealthScript.
QUOTE:
How to Calculate the Altman Z-Score
Altman Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
A = working capital / total assets
B = retained earnings / total assets
C = earnings before interest and tax / total assets
D = market value of equity / total liabilities
E = sales / total assets
So it's a matter of subscribing to a supported fundamental data provider that returns these event items (capital, assets etc.) and making some basic math on the event data series in WealthScript.
OK thanks Eugene. I thought maybe there was some fanatic finantic extension that might offer it. My TD Ameritrade and Fidelity Accounts do not, so, I'm looking around a bit.
EODHD should have these items: RetainedEarnings, TotalAssets, RetainedEarnings, TotalLiab.
However, other items such as Sales or WorkingCapital wasn't exposed in their API at development time. :/
https://www.wealth-lab.com/extension/detail/EODHD
However, other items such as Sales or WorkingCapital wasn't exposed in their API at development time. :/
https://www.wealth-lab.com/extension/detail/EODHD
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