07-26-2015, 03:08 PM
I'm familiar with the ratio, and use it primarily to filter out companies when performing a screen. It looks like rapidacid utilizes this metric similarly.
I've found the metric less useful when seriously analyzing a company. If I've gotten to the "serious analysis" stage, then I will already have a firm conviction that the company is very unlikely to declare bankruptcy.
Isn't this is like saying: "Enron falsified financial statements, so I no longer look at financial statements when analyzing a companies."
I've found the metric less useful when seriously analyzing a company. If I've gotten to the "serious analysis" stage, then I will already have a firm conviction that the company is very unlikely to declare bankruptcy.
(07-26-2015, 10:30 AM)navyasw02 Wrote: Interesting, but I found an article from April saying MAT was a good investment based on its Altman Z-score and that was evidence enough for me to stop looking at this seriously.
Isn't this is like saying: "Enron falsified financial statements, so I no longer look at financial statements when analyzing a companies."