Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Good Sign:
Northern Lights Acquisition has a Altman Z2-Score of 11.86, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Northern Lights Acquisition's Altman Z2-Score or its related term are showing as below:
NLITW'
s Altman Z2-Score Range Over the Past 10 Years
Min: 11.86 Med: 15.75 Max: 18.08
Current: 11.86
During the past 1 years, Northern Lights Acquisition's highest Altman Z2-Score was 18.08. The lowest was 11.86. And the median was 15.75.
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NLITW vs KWAC, MBTC, PONO: Altman Z2-Score Comparison
For the Shell Companies subindustry, Northern Lights Acquisition's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Lights Acquisition Altman Z2-Score vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Northern Lights Acquisition's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Northern Lights Acquisition's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Northern Lights Acquisition (NLITW) has a Altman Z2-Score of 11.86 as of Jul. 01, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Northern Lights Acquisition and its competitors. This is 25% below median its historical median of 15.75. Over the past decade, Northern Lights Acquisition's Altman Z2-Score has ranged from 11.86 to 18.08.
Is Northern Lights Acquisition's Altman Z2-Score too high?
Northern Lights Acquisition's current Altman Z2-Score of 11.86 is 25% below median its 10-year median of 15.75. Over the past 10 years, this metric has ranged from a low of 11.86 to a high of 18.08. The Diversified Financial Services industry median Altman Z2-Score is 10.78. Northern Lights Acquisition's value of 11.86 is 10% above this industry median. Overall, Northern Lights Acquisition has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Northern Lights Acquisition's Altman Z2-Score compare to KWAC and MBTC?
Northern Lights Acquisition's Altman Z2-Score of 11.86 can be compared against companies in the Diversified Financial Services industry. The industry median Altman Z2-Score is 10.78. Northern Lights Acquisition's value of 11.86 is 10% above this benchmark. Historically, Northern Lights Acquisition's own Altman Z2-Score has ranged from 11.86 to 18.08 over the past decade. While the company's 10-year median is 15.75 vs. the industry median of 10.78, Northern Lights Acquisition has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z2-Score for a Diversified Financial Services company?
The median Altman Z2-Score among Diversified Financial Services companies is 10.78, based on 421 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northern Lights Acquisition's current Altman Z2-Score of 11.86 is 10% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Northern Lights Acquisition and its competitors. For the Diversified Financial Services industry, the median Altman Z2-Score is 10.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Lights Acquisition's current Altman Z2-Score is 11.86, which is 25% below median its own 10-year median of 15.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Lights Acquisition stock overvalued right now?
Northern Lights Acquisition (NLITW) has a current Altman Z2-Score of 11.86. The current Altman Z2-Score is 11.86, which is 25% below median its 10-year median of 15.75 and 10% above the Diversified Financial Services industry median of 10.78. Northern Lights Acquisition's overall GF Score™ is 20/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Northern Lights Acquisition (NLITW), the current Altman Z2-Score is 11.86 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Address10 East 53rd Street, Suite 3001, New York, NY, USA, 10022
Northern Lights Acquisition Corp is a blank check company. It is formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses.
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