Is Nexstar Headed For Bankruptcy?

Do you know what an Altman Z-Score is?

I’ll be honest, I didn’t know until I looked it up.

“The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, who was, at the time, an Assistant Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years.”

It seems that many who track business across all different industries look at a company’s Altman Z-score to see how the company is doing.

Well, it appears that when it comes to Nexstar, the Z-Score is not very good.

The website Guru Focus posted this about Nexstar and it claims that the company is in a “distress zone” which implies bankruptcy is possible in the next two years.

Screenshot from the website: