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.
Springate Score in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_springate_score as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["M", "KSS", "GAP"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.models.get_springate_score().xs("Springate Score", level=1)
Or, after setting up the Finance Toolkit MCP, ask:
What was the Springate score of Macy's, Kohl's and Gap from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| GAP | 0.8575 | 0.6249 | 0.9346 | 1.1942 | 1.1859 |
| KSS | 1.2226 | 0.5896 | 0.809 | 0.6373 | 0.759 |
| M | 1.2937 | 1.1721 | 0.7495 | 0.9653 | 1.015 |
Parameters
get_springate_score accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
rounding | int | The number of decimals to round the results to. Defaults to None. | 2 |
growth | bool | Whether to calculate the growth of the values. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | None | The trailing period to use for the calculation. Defaults to None, which is 4 on quarterly data (a trailing twelve months), as the score was estimated on yearly statements. | 4 |
show_columns | list[str] | None | List of columns to show in the results. If None, all columns will be shown. Defaults to None. | ["EBIT to Total Assets", "Springate Score"] |