Z score of Starbucks Corporation (2006-2008)

Z
X1

1.2X1

1.4X2 +

3.3X3 +

0.6X4 +

X5

Working capital /Total asset

Current asset-current liability /Total asset
2006

2007

X1= -0.091631837
X2

2007

X2= 0.485688114
=

2007

X3= 0.20461844
=

X3= 0.197677

2007

X4= 0.318118917
=

X2= 0.42351

2008
X3= 0.090417

Market value of equity / Total Liability

2006

X5

X2= 0.409696

2008

EBIT/ Total asset

2006

X4

X1= -0.07787

Retain earning/ Total asset

2006

X3

X1= -0.08591

2008

X4= 0.241195

2008
X4= 0.237609

Sale / Total asset

2006

2007

X5= 1.758195018

X5= 1.761174

2008
X5= 1.910588

Z(2006) =1.2(-0.091631837)+1.4(0.485688114)+3.3(0.20461844)+0.6(0.318118917)+
1.75819501
Z(2006) =
Z(2007) =
Z(2007) =
Z(2008) =
Z(2008) =

3.194312375
1.2(-0.08591)+1.4(0.409696)+3.3(0.197677) +0.6(0.241195)+ 1.761174
3.0287075
1.2*(-0.07787)+1.4*( 0.42351)+3.3*(0.090417)+0.6*(0.237609)+ 1.910588
2.8509995
20