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Liberty Broadband (Liberty Broadband) Financial Strength

: 4 (As of Dec. 2023)
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Liberty Broadband has the Financial Strength Rank of 4.

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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Liberty Broadband's Interest Coverage for the quarter that ended in Dec. 2023 was 0.24. Liberty Broadband's debt to revenue ratio for the quarter that ended in Dec. 2023 was 3.82. As of today, Liberty Broadband's Altman Z-Score is 1.48.


Competitive Comparison

For the Telecom Services subindustry, Liberty Broadband'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.


Liberty Broadband Financial Strength Distribution

For the Telecommunication Services industry and Communication Services sector, Liberty Broadband's Financial Strength distribution charts can be found below:

* The bar in red indicates where Liberty Broadband's Financial Strength falls into.



Liberty Broadband Financial Strength Calculation

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:

Liberty Broadband's Interest Expense for the months ended in Dec. 2023 was $-55.0 Mil. Its Operating Income for the months ended in Dec. 2023 was $13.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $3,816.0 Mil.

Liberty Broadband's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*13/-55
=0.24

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Liberty Broadband'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
=(3 + 3816) / 1000
=3.82

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.

Liberty Broadband has a Z-score of 1.48, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.48 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.


Liberty Broadband  (NAS:LBRDA) 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.

Liberty Broadband has the Financial Strength Rank of 4.


Liberty Broadband Financial Strength Related Terms

Thank you for viewing the detailed overview of Liberty Broadband's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Liberty Broadband (Liberty Broadband) Business Description

Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
Liberty Broadband Corp serves in the telecommunications industry in the United States. It provides cable services to both residential and small to medium businesses through its fiber, hybrid fiber, and coaxial cable infrastructure. The services provided by the company are residential services which include video services, internet services, voice services, and mobile services, commercial services which include small, and medium business and enterprise solutions, advertising services, and other services which include security and home management. The reportable segments of the company are GCI Holdings, Charter. The firm derives the majority of its revenue from GCI Holdings.
Executives
Richard R Green director 1550 WEWATTA STREET, STE 1000, DENVER CO 80202
Welsh John E Iii director AVALON CAPITAL PARTNERS, 181 MAIN ST, COLD SPRING HARBOR NY 11724
Gregory B Maffei director, officer: President/CEO 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Brian J Wendling officer: CAO/PFO 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
J David Wargo director C/O WARGO & CO, 712 FIFTH AVENUE 41ST FLOOR, NEW YORK NY 10019
Julie D. Frist director 810 JACKSON BLVD., NASHVILLE TN 37205
Albert E Rosenthaler officer: Chief Corp. Dev. Officer 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Renee L Wilm officer: Chief Legal Officer 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
John C Malone director, 10 percent owner 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Mark D Carleton officer: Chief Financial Officer 12300 LIBERTY BLVD., ENGLEWOOD CO 80112
Richard N Baer officer: Chief Legal Officer
Christopher W Shean officer: Chief Financial Officer 12300 LIBERTY BLVD., ENGLEWOOD CO 80116
Donne F Fisher director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Liberty Media Corp 10 percent owner 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112