Bankruptcy Risk and Z-Score Analysis

Following are selected ratios for Tesla for two recent fiscal years.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

Ratio	2018	2017
Current ratio	1.135	0.831
Working capital to total assets	0.542	0.4430
Retained earnings to total assets	(0.177)	(0.1788)
EBIT to total assets	(0.002)	(0.0549)
EBITDA to total assets	0.061	0.0527
Market value of equity to total liabilities	3.390	2.7830
Sales to total assets	1.216	0.8950

Compute and interpret Altman Z-scores for the company for both years.

	Year	Z-score
	2017
	2018

Is the company's bankruptcy risk increasing or decreasing over this period? Answer