Source code for frds.measures._z_score

import numpy as np

[docs] def z_score(roa: float, capital_ratio: float, past_roas: np.ndarray) -> float: r""":doc:`/measures/z_score` Args: roa (float): the current bank ROA. capital_ratio (float): the current bank equity to asset ratio. past_roas (np.ndarray): ``(n_periods,)`` array of past bank ROAs used to calculate the standard deviation. Returns: float: The bank's Z-score """ return (roa + capital_ratio) / np.std(past_roas)