Altman Z″ Zones (safe, grey, distress)

The three bands the Altman score is read in, which say how close the company looks to serious financial trouble.

Above 2.6 is the safe zone, so trouble looks unlikely. Between 1.1 and 2.6 is the grey zone, so keep watching. Below 1.1 is the distress zone, so trouble looks likely. It is a rule of thumb drawn from past companies and not a prediction.