Statement Diagnostics
Four published lenses on one set of statements: Altman’s solvency score, Beneish’s earnings-quality screen, the DuPont decomposition of return on equity, and a working-capital ratio pack. These are screens that tell you where to look next — none of them is a conclusion.
safe above 2.99 · distress below 1.81 · grey between
A score in the safe zone places this company away from the historical bankruptcy sample. The contributions below show which term carries the score.
Contributions to the score
| Term | Contribution |
|---|---|
| 1.20 × Working capital / Total assets | 0.17 |
| 1.40 × Retained earnings / Total assets | 0.59 |
| 3.30 × EBIT / Total assets | 0.39 |
| 0.60 × Market cap / Total liabilities | 1.28 |
| 1.00 × Sales / Total assets | 0.95 |
| Altman Z-score | 3.38 |
Underlying ratios
| Ratio | Value |
|---|---|
| x1 — Working capital / Total assets | 0.15 |
| x2 — Retained earnings / Total assets | 0.42 |
| x3 — EBIT / Total assets | 0.12 |
| x4 — Equity / Total liabilities | 2.13 |
| x5 — Sales / Total assets | 0.95 |
Z″ drops asset turnover on purpose: for service businesses the sales term is industry noise, not a solvency signal.
Preset figures are illustrative teaching inputs, not live company data. And a caution that outlives this page: comparing Altman scores across accounting frameworks — an Ind AS filer against a US GAAP filer — is misleading without restating the statements to a common basis first.