This measures the extent to which the value of assets can deteriorate before triggering insolvency. We do not have access to the market value of preferred equity so we must necessarily use the book value of preferred.

Our Formula

AltmanX4 = (MktCap+PfdEquityQ)/ LiabTotQ

NOTE: when N/A's are encountered during preliminary reports the preliminary data is excluded by falling back to previous quarter

Related Factors:

AltmanX1 AltmanX2 AltmanX3 AltmanX4 AltmanX5 AltmanX4Rev AltmanZ