LendingClub (NYSE:LC) Long-Term Debt & Capital Lease Obligation

: $115 Mil (As of Mar. 2023)

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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. LendingClub's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $115 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. LendingClub's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2023 was $115 Mil. LendingClub's Total Assets for the quarter that ended in Mar. 2023 was $8,754 Mil. LendingClub's LT-Debt-to-Total-Asset for the quarter that ended in Mar. 2023 was 0.01.

LendingClub's LT-Debt-to-Total-Asset declined from Mar. 2022 (0.05) to Mar. 2023 (0.01). It may suggest that LendingClub is progressively becoming less dependent on debt to grow their business.

LendingClub Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for LendingClub's Long-Term Debt & Capital Lease Obligation can be seen below:

* 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.

* Premium members only.

LendingClub Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Long-Term Debt & Capital Lease Obligation

2,162.23

1,234.42

884.12

402.21

140.80

LendingClub Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Long-Term Debt & Capital Lease Obligation																292.82	237.63	197.19	140.80	115.24

LendingClub Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.

LendingClub (NYSE:LC) Long-Term Debt & Capital Lease Obligation Explanation

LendingClub's LT-Debt-to-Total-Asset ratio for the quarter that ended in Mar. 2023 is calculated as:

LT-Debt-to-Total-Asset (Q: Mar. 2023 )	=	Long-Term Debt & Capital Lease Obligation (Q: Mar. 2023 )	/	Total Assets (Q: Mar. 2023 )
	=	115.239	/	8754.018
	=	0.01

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet

LendingClub Long-Term Debt & Capital Lease Obligation Related Terms

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LendingClub (NYSE:LC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » LendingClub Corp (NYSE:LC) » Definitions » Long-Term Debt & Capital Lease Obligation

Comparable Companies

Traded in Other Exchanges

8LCA:Germany

Address

595 Market Street, Suite 200, San Francisco, CA, USA, 94105

Website

https://www.lendingclub.com

LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offer loan products such as personal, education and patient finance, small business and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.

Executives

Andrew Labenne	officer: Chief Financial Officer	C/O BAKKT HOLDINGS, INC., 5500 WINDWARD PKWY., SUITE 450, ALPHARETTE GA 30005
Kathryn Reimann	director	C/O LENDINGCLUB CORPORATION, 595 MARKET ST., #200, SAN FRANCISCO CA 94105
Syed Faiz Ahmad	director	7601 SOUTHWEST PARKWAY, AUSTIN TX 78735
Adrienne Harris	director	150 NORTH RIVERSIDE PLAZA, SUITE 5200, CHICAGO IL 60606
Allan R Landon	director	130 MERCHANT ST 22ND FLR, HONOLULU HI 96813
Erin Selleck	director	C/O BROADWAY FINANCIAL CORPORATION, 5055 WILSHIRE BLVD. SUITE 500, LOS ANGELES CA 90036
Annie Armstrong	officer: Chief Risk Officer	C/O LENDINGCLUB CORPORATION, 595 MARKET ST. #200, SAN FRANCISCO CA 94105
Shanda Global Investment Ltd	10 percent owner	303 TWIN DOLPHIN DRIVE, #6054, REDWOOD CITY CA 94065
Michael P Zeisser	director
Brandon Pace	officer: General Counsel and Secretary	C/O LENDINGCLUB CORPORATION, 595 MARKET ST, SUITE 200, SAN FRANCISCO CA 94105
Ronnie Momen	officer: Chief Lending Officer	C/O LENDINGCLUB CORPORATION, SAN FRANCISCO CA 94105
Valerie Kay	officer: Chief Capital Officer	C/O LENDINGCLUB CORPORATION, 71 STEVENSON ST, SUITE 1000, SAN FRANCISCO CA 94105
Bahman Koohestani	officer: Chief Technology Officer	500 W. MADISON STREET, #1000, CHICAGO IL 60661
Susan C Athey	director	C/O EXPEDIA, INC., 333 108TH AVE NE, BELLEVUE WA 98004
Shanda Group Usa Ltd	10 percent owner	2735 SAND HILL ROAD, #140, MENLO PARK CA 94025