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Bankruptcy Risk and Z-Score Analysis Following are selected ratios for JetBlue Airways for two recent fiscal years. Ratio 2010 2009 Current ratio 1.253 1.326 Working
Bankruptcy Risk and Z-Score Analysis Following are selected ratios for JetBlue Airways for two recent fiscal years. Ratio 2010 2009 Current ratio 1.253 1.326 Working capital to total assets 0.042 0.058 Retained earnings to total assets 0.033 0.019 EBIT to total assets 0.050 0.040 Market value of equity to total liabilities 0.390 0.320 Sales to total assets 0.573 0.503 Compute and interpret Altman Z-scores for the company for both years. (Do not round until your final answer, 2010 Z-score = 2009 Z-score Which of the following statements best describes the company's Altman 2-scores? OBoth Altman z-scores are above 3.00 which indicate the company has a very high probability of bankruptcy. Both Altman 2-scores are below 1.80 which indicate the company has a very low probability of bankruptcy Both Altman 2-scores are above 3.00 which indicate the company has a very low probability of bankruptcy. Both Altman 2-scores are below 1.80 which indicate the company has a very high probability of bankruptcy
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