# Springate S-Score

`D18-F04-A07` · Fundamental Analysis and Valuation → Quality and Distress · archetype `record-transform` · difficulty 2/5 · verification **verified**

Full page: https://docs.thefintechbuilder.com/fundamental-analysis-and-valuation/quality-and-distress/springate-s-score/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { springateSScore } from "fintech-algorithms/fundamental-analysis-and-valuation/quality-and-distress/springate-s-score";
```

## Signature

```ts
springateSScore(data)
```

Computes Springate's 1978 four-ratio discriminant S-Score from working capital, EBIT, pre-tax profit and sales, and reports which side of the 0.862 cutoff the score falls on.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `data` | `{ total_assets: number; current_liabilities: number; working_capital: number; ebit: number; ebt: number; sales: number }` | yes | One accounting record. `total_assets` scales `working_capital`, `ebit` and `sales`, while `current_liabilities` scales `ebt`. |

## Returns

`{ state: string; method: string; ratios: { working_capital_to_assets: number; ebit_to_assets: number; ebt_to_current_liabilities: number; sales_to_assets: number }; s_score: number; screen: string; cutoff: number }`

`ratios` holds the four discriminant inputs and `s_score` weights them by 1.03, 3.07, 0.66 and 0.4 with no intercept. `cutoff` is 0.862 and `screen` is `distress-side` below it and `non-distress-side` otherwise. `method` is `springate-1978-four-ratio` and `state` is `calculated`.

## Errors

- When data is not a plain object — throws TypeError
- When any field read is missing or not a finite number — throws TypeError
- When total_assets or current_liabilities is zero or negative — throws RangeError

## Complexity

Time `O(1)`, space `O(1)`.

## Worked example

Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

### Input

`data`:

```json
{
  "total_assets": 1000,
  "current_liabilities": 250,
  "working_capital": 200,
  "ebit": 160,
  "ebt": 140,
  "sales": 1200
}
```

### Call

```ts
springateSScore(data)
```

### Returns

object with 6 fields: state, method, ratios, s_score, screen, cutoff

```json
{
  "state": "calculated",
  "method": "springate-1978-four-ratio",
  "ratios": {
    "working_capital_to_assets": 0.2,
    "ebit_to_assets": 0.16,
    "ebt_to_current_liabilities": 0.56,
    "sales_to_assets": 1.2
  },
  "s_score": 1.5468000000000002,
  "screen": "non-distress-side",
  "cutoff": 0.862
}
```

## Other exports

`calculate`, `altmanZScore`, `piotroskiFScore`, `beneishMScore`, `sloanAccrualMeasure`, `ohlsonOScore`, `zmijewskiXScore`, `tafflerZScore`, `fulmerHScore`, `groverGScore`, `dechowFScoreForMisstatementRisk`, `dechowDichevAccrualQuality`, `modifiedJonesDiscretionaryAccrualModel`. Every module additionally exports `run` as an alias of its primary
function, and a `meta` object carrying its catalog id, domain, family, shape and article URL.

## Verification and provenance

Tier: **verified** (via D).

The worked example below is the figure published in this algorithm's article, replayed and asserted by the test suite on every build. The arithmetic cannot drift without the build failing.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.0.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/fundamental-analysis-and-valuation/quality-and-distress/springate-s-score/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/fundamental-analysis-and-valuation/quality-and-distress/springate-s-score/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/fundamental-analysis-and-valuation/llms.txt