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LivePerson has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
LivePerson Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.GuruFocus does not calculate LivePerson's interest coverage with the available data. LivePerson's debt to revenue ratio for the quarter that ended in Dec. 2023 was 1.55. As of today, LivePerson's Altman Z-Score is -1.22.
For the Software - Application subindustry, LivePerson's Financial Strength, along with its competitors' market caps and Financial Strength 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.
For the Software industry and Technology sector, LivePerson's Financial Strength distribution charts can be found below:
* The bar in red indicates where LivePerson's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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:
LivePerson's Interest Expense for the months ended in Dec. 2023 was $0.0 Mil. Its Operating Income for the months ended in Dec. 2023 was $-26.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $513.7 Mil.
LivePerson's Interest Coverage for the quarter that ended in Dec. 2023 is
GuruFocus does not calculate LivePerson's interest coverage with the available data. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
LivePerson's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
Debt to Revenue Ratio | = | Total Debt (Q: Dec. 2023 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (78.149 | + | 513.738) | / | 381.872 | |
= | 1.55 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
LivePerson has a Z-score of -1.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.22 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
LivePerson (NAS:LPSN) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
LivePerson has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Thank you for viewing the detailed overview of LivePerson's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
John Deneen Collins | officer: Chief Financial Officer | LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018 |
Jeffrey Ford | officer: Chief Accounting Officer | 530 7TH AVE., FLOOR M1, NEW YORK NY 10018 |
Alex Kroman | officer: EVP, Product and Technology | 530 7TH AVE., FLOOR M1, NEW YORK NY 10018 |
Norman M. Osumi | officer: Chief Accounting Officer | C/O LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018 |
Monica L. Greenberg | officer: EVP, General Counsel | LIVEPERSON, INC., 462 SEVENTH AVENUE 3RD FLOOR, NEW YORK NY 10018 |
Robert P Locascio | director, 10 percent owner, officer: Chief Executive Officer | C/O LIVEPERSON INC, 462 SEVENTH AVENUE, NEW YORK NY 10018 |
William Wesemann | director | 130 MONTALVO ROAD, REDWOOD CITY CA 94062 |
James R. Miller | director | 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040 |
Bruce Edward Hansen | director | 17732 VINEYARD LANE, POWAY CA 92064 |
Vanessa Pegueros | director | C/O CARBON BLACK, INC., 1100 WINTER STREET, WALTHAM MA 02451 |
Yael Zheng | director | 345 ENCINAL STREET, SANTA CRUZ CA 95060 |
Alexander Spinelli | officer: EVP, Chief Technology Officer | LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018 |
Kevin Lavan | director | 44 HILLCREST ROAD, MARTINSVILLE NJ 08836 |
Ernest T. Cu | director | LIVEPERSON, INC., 475 TENTH AVENUE, 5TH FLOOR, NEW YORK NY 10018 |
Daryl Carlough | officer: SVP, Global & Corp Controller | BEDMINSTER ONE, 135 US HIGHWAY 202/206, SUITE 11, BEDMINSTER NJ 07921 |
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