Home / Questions / 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
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