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Thursday, 06/29/2023 6:59:01 AM

Thursday, June 29, 2023 6:59:01 AM

Post# of 26386

Dalrada Financial's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Z Score = Sum Of 5 Factors
Current Dalrada Financial Z Score -8.2

Most of Dalrada Financial's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Dalrada Financial Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor = 1.2 * (Working Capital/Total Assets)
Second Factor = 1.4 * (Retained Earnings/Total Assets)
Thrid Factor = 3.3 * (EBITAD/Total Assets \)
Fouth Factor = 0.6 * (Market Value of Equity/Total Liabilities)
Fifth Factor = 0.99 * (Revenue/Total Assets)

To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.



https://www.macroaxis.com/invest/ratio/DFCO/Z-Score
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