Business By the Numbers - Part 6 - Z-Score

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    By Jim D'Amico


     “Business By the Numbers - Part 5” discussed the importance of tracking your business by using numbers from your Profit and Loss statement to determine your Break Even Analysis.

    The next topic to discuss is Z-Score.  Again, we’ll use the information from the Vistage* “Formulas for Success” publication.

    Business Z-Score

    The final business KPI is our Z-Score.  It is a measure of the overall health for most businesses.  As with the other key indicators, what is important is to measure the trend year over year and see whether the Z-Score is increasing (which is good) or decreasing (which is not good).


     Z-Score Scoring

    0 - 1.09          Bankruptcy Imminent

    1.10 - 2.60     Very Questionable

    2.60 +            Bankruptcy Not Imminent”

    Business By the Numbers - Part 7 will feature Additional KPIs.

    From the beginning, our coaching Chairs have been at the heart of what makes the Vistage experience so powerful for so many members. Vistage Chairs are a distinguished group of business leaders who come to us from a wide range of industries. Some have owned businesses, many have been CEOs of domestic and international companies, and all are united by a desire to share their insight and expertise to educate other business leaders in their communities through executive business coaching.


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