For each section of the worksheet, enter a risk value in the cell labeled "Selected Risk". Base your judgment on the data displayed for that section.
Z Score
Enter the subject business's common stock and retained earnings. The worksheet will calculate Z scores for each year and display them in the table at the bottom of the input grid. Each year's score will be displayed on the appropriate line in the table:
Score |
|
Display Line |
Z <= 1.8 |
|
Very High |
1.8 < Z <= 2.7 |
|
High |
2.7 < Z <= 2.9 |
|
Possible |
2.9 < Z |
|
Not Likely |