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Harley Fuller
Mathematics
19 July, 00:31
What are Z - and Z2-scores?
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Maci Flores
19 July, 00:33
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The Z-Score is a shorthand to describe the financial health of a company, and its likelihood of financial distress. If the Z Score is falling towards 1.8 then it may be a sell signal. Z2 is the Z-Score for non-manufacturing companies (but excluding property/financial companies) and this version is calculated based using the latest available interim financials.
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