Hi guys,

I have a gquestion regarding the Altman z-score..

I do have the calculation for this z-score, but the score cannot be calculated like this in stata:

gen T1=wcap/at

gen T2=re/at

gen T3=ebit/at

gen T4=mkvalt/lt

gen T5=sale/at

gen ALTMAN=(1.2*T1)+(1.4*T2)+(3.3*T3)+(0.6*T4)+(0.99*T5)

at = total assets

wcap = working capital

re = retained earnings

ebit = earnings before extraordinary income

mkvalt = market value of equity

sale = sales

lt = total liabilities

The formula for ALTMAN does not create the z-score in STATA

Does anyone know the path or command in STATA to calculate this z-score?

Best regards and lots of thanks