Discussion Questions

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excel_example.xlsx

Sheet1

Altman's Z Score
Company McCormick & Company (MKC) (Yahoo Finance 2016)
Constants
$1,406.5 Total Working Capital (Current Assets 1.2 0.37
$4,507.8 Total Assets
$1,036.7 Retained Earnings 1.4 0.32
$4,507.8 Total Assets
$549.5 EBIT 3.3 0.40
$4,507.8 Total Assets
$10,856.3 Market Value of Equity 0.6 2.30
$2,837.6 Total Liabilities
$4,296.3 Sales 1.0 0.95
$4,507.8 Total Assets
4.35 = Z Score 4.35
Above 2.675 signals solvency Above 2.99 clearly shows
non-bankrupt sector
Below 2.675 signals insolvency Below 1.81 clearly bankrupt
115.4 Number of Weighted Average Shares Outstanding
$94.10 Market Price of Stock

Sheet2

Sheet3

Sheet4