Which of the following is not included in the calculation of a Z-Score?
A) Working capital
B) Cash Flow
C) Market value of equity
D) Sales

Question

Quizplus · Accepted Answer

Cash Flow is not included in the calculation of a Z-Score, which is a financial model used to predict the likelihood of a business's bankruptcy. The Z-Score formula includes variables such as working capital, retained earnings, earnings before interest and taxes, market value of equity, and sales, but not cash flow.

Which of the Following Is Not Included in the Calculation