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
get_springate_score is part of 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.