General Principles of Credit Analysis Relying on the figures of Crystal Brands, Inc. calculate its Altman's Z-score and fill in the table below. Crystal Brands, Inc. selected financial data (in 000) Year 2016 2017 2018 2019 Net sales EBIT Current assets Current liabilities Total assets Total debt Retained earnings Number of shares Market price per share 2015 $ 857,241 84,758 351,726 167,558 682,528 444,779 47,161 9,078 33.03 868,465 84,393 363,880 172, 179 688,138 421,963 74,235 9,098 21.06 826,876 (19,345) 350.048 199.761 659,437 465,946 1,019 9,116 14.00 486,893 444,302 1,103 (87,379) 245.744 155,245 77.165 313,392 486,309 248,437 362, 128 340,556 (66,801) (282,917) 9,117 9,117 4.03 1.07 Current 0.096737 1.2 x (Current assets 0.323798 liabilities) / Total assets 1.4 x (Retained earnings / Total assets) 3.3 * (EBIT / Total assets) 0.409801 0.6 (Market value of stock/Book 0.404488 value of liabilities) 1.0 (Sales/Total assets) 1.255979 Z-score Note: Altman's suggested Z-score cutoff If Z is less than 1.81 - this indicates a problem: If Z is between 1.81 and 299 - this indicates a concer; If Z is greater than 299 - this indicates no problem. The Z-score is a good measure of overall health. Do not become too hung-up on Altman's 1.81 cutoff. Observe how the Z-score varies across time. I would be less worried about a company whose Z-score remains between 1.70 and 1.85 for the last 10 years than about a fimm that dropped from 2.8 to 1.95 in 1 year. Use your judgment regarding this ratio. Summary