Professor Edward Altman is interviewed about his Z-Score research
— February 2, 2016
Excerpt from the CFA Institute blog -- "At that time, there were a lot of variables in the literature that you could choose to predict insolvency. But I decided there are two variables that were potentially very powerful but had not been used yet. One was the retained earnings: The argument there being a firm that has grown its assets mainly by reinvesting earnings is healthier than a firm that has grown the assets by using 'other people’s money.'"