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LivePerson Financial Strength

: 3 (As of Jun. 2022)
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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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

LivePerson did not have earnings to cover the interest expense. LivePerson's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.40. As of today, LivePerson's Altman Z-Score is 0.34.


Competitive Comparison

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.

   

LivePerson Financial Strength Distribution

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.



LivePerson 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:

LivePerson's Interest Expense for the months ended in Jun. 2022 was $-0.7 Mil. Its Operating Income for the months ended in Jun. 2022 was $-59.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $736.7 Mil.

LivePerson's Interest Coverage for the quarter that ended in Jun. 2022 is

LivePerson did not have earnings to cover the interest expense.

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 Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.1 + 736.697) / 530.26
=1.40

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 0.34, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.34 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.


LivePerson Financial Strength Related Terms

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.


LivePerson Business Description

LivePerson logo
Traded in Other Exchanges
Address
475 Tenth Avenue, 5th Floor, New York, NY, USA, 10018
LivePerson Inc offers cloud-based platform solutions. It enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging, while leveraging bots and Artificial Intelligence (AI) to increase efficiency. The company has two reportable segments namely Business and Consumer. It generates maximum revenue from the Business segment. The company has a presence in the United Kingdom, Asia-Pacific, Latin America, and Western Europe.
Executives
Cu Ernest T. director LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Osumi Norman M. officer: Chief Accounting Officer C/O LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Collins John Deneen officer: Chief Financial Officer LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Greiner Christopher E officer: EVP, Chief Financial Officer C/O INOVALON HOLDINGS, INC. 4321 COLLINGTON ROAD BOWIE MD 20716
Spinelli Alexander officer: EVP, Chief Technology Officer LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Vanounou Eran officer: Chief Technology Officer C/O LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Mossler Fred director LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Layfield Jill director LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Dean Dustin officer: EVP, Global Sales/Cust Success LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018
Murphy Daniel Richard officer: Chief Financial Officer C/O LIVEPERSON, INC. 462 SEVENTH AVENUE, 3RD FLOOR NEW YORK NY 10018
Carlough Daryl officer: SVP, Global & Corp Controller BEDMINSTER ONE 135 US HIGHWAY 202/206, SUITE 11 BEDMINSTER NJ 07921
Greenberg Monica L. officer: EVP, General Counsel LIVEPERSON, INC. 462 SEVENTH AVENUE 3RD FLOOR NEW YORK NY 10018
Block Peter director C/O LIVEPERSON, INC. 462 SEVENTH AVENUE, 3RD FLOOR NEW YORK NY 10018
Vaskevitch David director ONE MICROSOFT WAY REDMOND WA 98052-6399
Banks Alan officer: EVP, Global Sales/Cust Success C/O LIVEPERSON, INC. 475 TENTH AVENUE, 5TH FLOOR NEW YORK NY 10018

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