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Beyond the Z Score there are several other ratios/benchmarks that almost always begin to get worse as you move closer to failing. What are some

Beyond the Z Score there are several other ratios/benchmarks that almost always begin to get worse as you move closer to failing. What are some of these tell-tale ratios?

  1. A/R Turnover, Inventory turnover, and market capitalization
  2. Gross Margin (%), income tax rates, and sales taxes
  3. Return on Assets, Liabilities to total assets, EBIT
  4. Treasury Stock to Total Inventory, Quick Ratio, number of members of the Board of Fe

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You are correct that the Zscore is a valuable tool for assessing financial healthbut several other ratios can also signal an approaching company failureHere are some key ones Liquidity Ratios Current ... blur-text-image

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