"Z- score"
Date calculated	16-Sep-04
Company	Lucent
Data used	10Q + extrapolation
Data input
Working Capital  = Current Assets - Current Liabilities
Current Assets	$7,483
Current Liabilities	$5,011
Working Capital	$2,472
Total Assets	$15,970
Retained Earnings	$1,000
Operating Income	$1,000
Market Cap. + preferred stock	$12,000
Total Debt	$5,000
Sales	$8,600
Z- score Results	2.51
What are the chances of bankruptcy ?
1.80 or less             Very High
1.81 to  2.7               High
2.8 to 2.9                  Possible
3.0 or higher           Not Likely
Formulas Used
(Working Capital / Total Assets  * 1.2 )	0.19
+ ( Retained Earnings/ Total Assets * 1.4)	0.09
+ (Operating Income/Total Assets * 3.3 )	0.21
+ (Market Value of Common and preferred Stock / Total Debt * .6 )	1.44
+ (Sales / Total Assets * 1.1 )	0.59
Score                  Probability of Short-term illiquidity	2.51
Here is a site which describes altman z scores with calculators