Business failure is a common occurrence in the business world, therefore, it is important to identify signs that indicate problems in the business on time. Businesses must also take into account not only their stability but also the stability and solvency of their customers in order to reduce the risk of potential loss due to write-offs of trade receivables. Even large companies are affected by crises, and that each crisis has its beginning and end, after which the enterprise will properly respond and overcome the crisis and continue its business, or it will disappear in the form in which it existed before. The outcome depends on the managers and their decisions. Their task is to identify and anticipate the danger and respond in a timely manner to get the company ready to take steps that will stop or reduce adverse outcome. In the bankruptcy forecasting category, the Z-score plays an important role and its results in assessing business failure forecasting are fairly accurate. It is important to have accurate and current data, because using outdated information reduces the possibillity, to make adequate decision. In this paper, we will analyse the Z-score indicator according to the available consolidated annual reports for companies in Croatia that have manufacturing industries.