Springate Score
Calculates the Springate Score, a financial metric used to predict the likelihood of a company going bankrupt. It follows the same multiple discriminant analysis methodology as the Altman Z-Score, but was calibrated on a smaller, Canadian-firm sample using four financial ratios instead of five.
The formula is as follows:
\[\text{Working Capital to Total Assets} = \text{Working Capital} / \text{Total Assets}\] \[\text{EBIT to Total Assets} = \text{EBIT} / \text{Total Assets}\] \[\text{EBT to Current Liabilities} = \text{Earnings Before Taxes} / \text{Total Current Liabilities}\] \[\text{Sales to Total Assets} = \text{Sales} / \text{Total Assets}\] \[\text{Springate Score} = 1.03 \cdot \text{Working Capital to Total Assets} + 3.07 \cdot \text{EBIT to Total Assets} + 0.66 \cdot \text{EBT to Current Liabilities} + 0.4 \cdot \text{Sales to Total Assets}\]The Springate Score can be interpreted as follows:
- A Springate Score of less than 0.862 indicates a high likelihood of bankruptcy.
- A Springate Score of greater than 0.862 indicates a low likelihood of bankruptcy.
Also known as: Springate Score, S-Score, bankruptcy prediction, financial distress score.
No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Springate Score for you. Just ask in plain English.
Calculate the Springate Score in Python
The Springate Score is available in the Models module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_springate_score as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "MSFT"], api_key="FINANCIAL_MODELING_PREP_KEY")
toolkit.models.get_springate_score().loc["AAPL"]
Which returns:
| 2021 | 2022 | |
|---|---|---|
| Working Capital to Total Assets | 0.0267 | -0.0527 |
| EBIT to Total Assets | 0.3187 | 0.3459 |
| EBT to Current Liabilities | 0.8703 | 0.7735 |
| Sales to Total Assets | 1.0422 | 1.1179 |
| Springate Score | 1.997 | 1.9655 |
Parameters
get_springate_score accepts the following parameters:
- rounding (int, optional): The number of decimals to round the results to. Defaults to None.
- growth (bool, optional): Whether to calculate the growth of the values. Defaults to False.
- lag (int | list[int], optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int | None, optional): The trailing period to use for the calculation. Defaults to None.
- show_columns (list[str] | None, optional): List of columns to show in the results. If None, all columns will be shown. Defaults to None.
Related Models
The Models module page introduces the module, and the sidebar lists all of its functions.