# Professor Edward Altman is interviewed about his Z-Score research

1 Faculty News February 2, 2016 ![CFA Institute blog logo](/sites/default/files/styles/246w/public/assets/images/con_032856.jpg?itok=V-VlUDNY)>

Excerpt from the [CFA Institute blog](https://blogs.cfainstitute.org/investor/2016/02/02/the-altman-z-score-in-edward-altmans-own-words/) -- "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.'"

[Read more](https://blogs.cfainstitute.org/investor/2016/02/02/the-altman-z-score-in-edward-altmans-own-words/)