Hi Sir, can I ask for the original formula of altman Z-Score = 0.012X1 + 0.014X2 + 0.033X3 + 0.006X4 + 0.999X5. But when I see on many website/journals that referencing this formula, they always use 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5. My logic then they must calculate the coeficient of X original times by 100 right? But why the X5 still 1? The result of course going to be different. Can you pls explain!
It's not just about multiplying the coefficient by 100, but also adjusting the value of the Xi variables. In those formulas that you found apparently they multiplied the coefficients of the variables X1 to X4 by 100, and the values that will be placed in these variables must be divided by 100, with the exception of the variable X5 that the coefficient was rounded to 1 and the value that will be placed in X5 will not be divided by 100. Best regards!
Professor, o que o senhor acha do Kanitz? Atualmente, qual o melhor modelo de insolvência? Já aplicou o Sanvicenti & Minardi?
Hi Sir, can I ask for the original formula of altman Z-Score = 0.012X1 + 0.014X2 + 0.033X3 + 0.006X4 + 0.999X5. But when I see on many website/journals that referencing this formula, they always use 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5. My logic then they must calculate the coeficient of X original times by 100 right? But why the X5 still 1? The result of course going to be different. Can you pls explain!
It's not just about multiplying the coefficient by 100, but also adjusting the value of the Xi variables. In those formulas that you found apparently they multiplied the coefficients of the variables X1 to X4 by 100, and the values that will be placed in these variables must be divided by 100, with the exception of the variable X5 that the coefficient was rounded to 1 and the value that will be placed in X5 will not be divided by 100. Best regards!