Debt and bankruptcy risk · updated October 21, 2026
What is the Zmijewski score and how is it calculated
The Zmijewski score estimates the probability of financial distress from just three numbers: how much profit the company makes on its assets, how indebted it is and how liquid it is. It is simpler than Altman and Ohlson and works as a third opinion.
The Zmijewski score formula
- Net profit ÷ Assets
- ROA, return on assets.
- Liabilities ÷ Assets
- The part of assets funded by debt.
- Current assets ÷ Current liabilities
- The current ratio.
- Probability
- Comes from X through a statistical function (probit): X = 0 means 50%.
How to read the Zmijewski score
The model puts a lot of weight on debt, so heavily indebted but profitable companies can come out with a high probability.
When the Zmijewski score can fool you
Sensitive to debt: utilities and infrastructure companies, naturally funded with debt, often score high without being in danger.
Related terms
Questions about the Zmijewski score
Why does it differ so much from Ohlson?
Because the models were calibrated on different companies and periods. That is why we show them separately and do not add them up.
These explanations are for information only. They are not a recommendation to buy or sell.
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