News for Credit Professionals

Want Odds of a Corporate Bankruptcy? There’s an App for That

Trite as the “There’s an app for that” saying has become in the growing cultural and business dominance of smart phones and devices, a new application apparently does exist to quickly help professionals determine the likelihood of a corporate bankruptcy. And it’s coming from a source familiar to veterans of monitoring trends in bankruptcy.

New York University professor Edward Altman, known as the father of the 1968 bankruptcy predicting model known as the “Z-Score,” is up to his old tricks, but in a whole new, high-tech world. Altman has unveiled a new application (or “App” as the tech-friendlies refer to them) for iPhone/iPad, Android and BlackBerry products called the “Altman Z-Score Plus.

The app relies on the Z-score model to determine the likelihood of publicly-traded U.S. company bankruptcies, like the original model from four-plus decades ago, as well as new wrinkles including many private firms, notably in the manufacturing field, and some internationally based outfits, particularly some key ones based in China.

Brian Shappell, NACM staff writer