SciELO - Scientific Electronic Library Online

vol.13 issue25Capital Asset Pricing Model (CAPM) applied to the corporate sector of EcuadorGender diversity and financial performance in Mexican stock companies author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand




Related links

  • Have no similar articlesSimilars in SciELO


RETOS. Revista de Ciencias de la Administración y Economía

On-line version ISSN 1390-8618Print version ISSN 1390-6291


ISAAC-ROQUE, Daniel  and  CAICEDO-CARRERO, Andrés. Relationship between the financial indicators of the Altman Z-model and the Z-Score. Retos [online]. 2023, vol.13, n.25, pp.139-158. ISSN 1390-8618.

from a theoretical point of view, there is no general consensus on the identification of a company’s financial difficulties. The Altman Z-Score model is recognized in the literature as an indicator for measuring the probability of financial insolvency. While this model is widely used as a metric for predicting financial distress, there is no agreement on the factors that determine the behavior or outcome of the Z-Score. In this sense, the purpose of this study is to analyze the factors that determine the behavior of the Z-Score in Colombian companies. The research is developed under a quantitative methodological approach, with a correlational design. This scope of research seeks to measure the association between the Altman Z-Score and the financial indicators that determine its outcome; to this end, a total of 2,684 companies in the Colombian commercial sector that reported financial information on a systematic basis during the period 2016-2020 are analyzed. The results of the statistical tests carried out reveal that there is a direct relationship between the indicator measuring financial structure (equity/liabilities) and the Altman Z-Score. This leads to the conclusion that a company that seeks to capitalize profits and keep debt levels under control, from the point of view of Altman’s model, will be a company with financial stability and a low probability of financial insolvency.

Keywords : liquidity; leverage; performance; financial structure; correlation; financial insolvency.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )