What does Altman' s z-score model mean？

Altman's z-score model is a statistical formula used to predict the likelihood of a company going bankrupt within the next two years. The model takes into account several financial ratios such as working capital, retained earnings, earnings before interest and taxes, market value of equity, and total assets. The resulting z-score is a numerical value that indicates the financial health of the company. A score below 1.8 suggests a high risk of bankruptcy, while a score above 3.0 indicates a low risk of bankruptcy. The model is commonly used by investors, analysts, and lenders to assess the creditworthiness of a company.