Compute and Interpret Altman's Z-scores
Following is selected financial information for Netflix.
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
In thousands, except per share data
Current assets
Current liabilities
Total assets
Total liabilities
Shares outstanding
Retained earnings
Stock price per share
Sales
Earnings before interest and taxes
2018
2017
$12,117,669 $9,587,468
6,487,320 5,466,312
32,468,000 23,765,928
25,919,544 19,288,483
545,749 541,741
2,942,359 1,731,117
335.00 191.96
15,794,341 14,615,891
2,006,533 838,679
Compute and interpret Altman Z-scores for the company for both years.
Year Z-score
2018 0
2017 0
Is the company's bankruptcy risk increasing or decreasing over this period?
Please answer all parts of the question.