When anyone is planning to acquire, keep or sell shares in a business, the financial health

thereof is of the utmost importance. According to Prof Edward Altman, the Z$-$score can be used

to predict with $95\%$ accuracy the risk of a business going bankrupt within a year, and with $72\%$

accuracy, within two years. Banks use similar information to make lending decisions. As a credit

analyst for Saamtrek Bank, use the information below to calculate the bankruptcy risk of

Matimba Transport $($Pty$)$ Ltd using Altman$$s Z$-$score, and then give your recommendation.

The following ratios are completed for Matimba Transport $($Pty$)$ Ltd for FY $2021$:

o working capital to total assets ratio $=25\%-$ X$1$

o retained earnings to total assets ratio $=30\%-$ X$2$

o profit before interest and tax to total assets $=32\%-$ X$3$

o market value of equity to book value of debt $=135\%-$ X$4$

o sales to total assets $=250\%-$ X$5$