Bankruptcy Risk and Z-Score Analysis Following are selected ratios for American Airways fo
Bankruptcy Risk and Z-Score Analysis
Following are selected ratios for American Airways for two recent fiscal years.
Ratio |
2005 |
2006 |
Current ratio |
0.725 |
0.740 |
Working capital to total assets |
(0.098) |
(0.089) |
Retained earnings to total assets |
(0.178) |
(0.183) |
EBIT to total assets |
0.017 |
0.060 |
Market value of equity to total liabilities |
0.158 |
0.254 |
Sales to total assets |
0.784 |
0.866 |
Compute and interpret Altman Z-scores for the company for both years. (Do not round until your final answer; then round your answers to two decimal places.)
2005 z-score = Answer
Abhinav
03-Dec-2019