Life Time Group Holdings (Life Time Group Holdings) Interest Coverage : 1.70 (As of Dec. 2023)

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What is Life Time Group Holdings Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Life Time Group Holdings's Operating Income for the three months ended in Dec. 2023 was $59 Mil. Life Time Group Holdings's Interest Expense for the three months ended in Dec. 2023 was $-35 Mil. Life Time Group Holdings's interest coverage for the quarter that ended in Dec. 2023 was 1.70. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Life Time Group Holdings Inc interest coverage is 1.72, which is low.

The historical rank and industry rank for Life Time Group Holdings's Interest Coverage or its related term are showing as below:

LTH' s Interest Coverage Range Over the Past 10 Years
Min: 0.97 Med: 1.37 Max: 1.72
Current: 1.72

LTH's Interest Coverage is ranked worse than
76.2% of 605 companies
in the Travel & Leisure industry
Industry Median: 5.13 vs LTH: 1.72

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Life Time Group Holdings Interest Coverage Historical Data

The historical data trend for Life Time Group Holdings's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Life Time Group Holdings Interest Coverage Chart

Life Time Group Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.30

0.97

1.72

Life Time Group Holdings Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial												1.56	2.16	1.64	1.41	1.70

Competitive Comparison of Life Time Group Holdings's Interest Coverage

For the Leisure subindustry, Life Time Group Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Life Time Group Holdings's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Life Time Group Holdings's Interest Coverage falls into.

Life Time Group Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Life Time Group Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Life Time Group Holdings's Interest Expense was $-131 Mil. Its Operating Income was $225 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,128 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	225.21	/	-130.797
	=	1.72

Life Time Group Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Life Time Group Holdings's Interest Expense was $-35 Mil. Its Operating Income was $59 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,128 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	58.669	/	-34.548
	=	1.70

The higher the ratio, the stronger the company's Financial Strength is.

Life Time Group Holdings (NYSE:LTH) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Life Time Group Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of Life Time Group Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Life Time Group Holdings (Life Time Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Life Time Group Holdings Inc (NYSE:LTH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2902 Corporate Place, Chanhassen, MN, USA, 55317

Website

https://www.lifetime.life

Life Time Group Holdings Inc is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centres in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.

Executives

Bahram Akradi	director, 10 percent owner, officer: Founder & CEO	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Erik Weaver	officer: SVP & Controller	C/O ORTHO-CLINICAL DIAGNOSTICS, INC., 1001 ROUTE 202, RARITAN NJ 08869
Robert P. Houghton	officer: EVP & CHIEF FINANCIAL OFFICER	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Teacher Retirement System Of Texas	other: Member of a group that is 10%	1000 RED RIVER STREET, AUSTIN TX 78701
Donna Coallier	director	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Jon Winkelried	10 percent owner	C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Tpg Gp A, Llc	10 percent owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jimena Almendares	director	C/O LIFE TIME GROUP HOLDINGS, INC., 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Lnk Life Time Fund, L.p.	director, 10 percent owner	81 MAIN STREET, WHITE PLAINS NY 10601
Partners Group Private Equity (master Fund), Llc	10 percent owner	1114 AVENUE OF THE AMERICAS, 37TH FLOOR, NEW YORK NY 10036
Green Ltf Holdings Ii Lp	director, 10 percent owner	11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Simon Property Group Inc /de/	10 percent owner	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204-3438
John Kristofer Galashan	director, 10 percent owner	LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Jss Ltf Holdings Ltd	10 percent owner	MARCY BUILDING, PURCELL ESTATE, P.O. BOX 2416, ROAD TOWN, TORTOLA D8 VG1110
Lifeco Llc	10 percent owner	499 PARK AVENUE, 24TH FLOOR, NEW YORK NY 10022