Z Score Analysis Sheet
| Z-SCORE | 2.11 | NA | WARNING | NA |
| DATE | ||||
| COMPANY | ||||
| In the early 60′s Edward Altman, using Multiple Discriminant Analysis combined a set of five financial ratios to create the Altman Z-Score. This score uses statistical techniques to predict a company’s probability of failure using the following eight variables from a company’s financial statements. The categories in green are from the Income statement and the categories in red are from the balance sheet. | ||||
| Earnings Before Interest & Taxes: EBIT | $500,000 | |||
| Total Assets | $2,000,000 | |||
| Net Sales | $68,000 | |||
| Total Equity | $1,985,000 | |||
| Total Liabilities | $900,000 | |||
| Current Assets | $677,000 | |||
| Current Liabilities | $124,000 | |||
| Retained Earnings | $413,000 |
Information for Business Owners
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Although small businesses are the largest contributors to the economy, they experience a failure rate of 80% during the first five years.
Half of the survivors fail over the following three years. The major reasons for failure are lack of sufficient capital and business knowledge, insufficient revenues, and no exit planning.
CPA Programs
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Like all businesses, a CPA’s practice has a target market and needs to differentiate itself from the competition.
For over 30 years FMC has been growing business including CPA practices providing value added services.
In your practice’s strategy, if you are not already targeting the small business, we strongly suggest you consider it.
If you already do, then we want to help you grow your practice.
Banking Solutions
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FMC Financial Services, Inc. (FMC) serves both banks and small business owners. Each is benefited mutually by growing together.
Small businesses account for over 55% of the GNP and exert a powerful impact on the local economy.
Without the support of local banks, small businesses would not have sufficient capital for growth.