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Life Time Group Holdings Financial Strength

: 3 (As of Mar. 2022)
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Life Time Group Holdings 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:

Life Time Group Holdings 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.

Life Time Group Holdings did not have earnings to cover the interest expense. Life Time Group Holdings's debt to revenue ratio for the quarter that ended in Mar. 2022 was 2.45. As of today, Life Time Group Holdings's Altman Z-Score is 0.22.


Competitive Comparison

For the Leisure subindustry, Life Time Group Holdings'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.

   

Life Time Group Holdings Financial Strength Distribution

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

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



Life Time Group Holdings 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:

Life Time Group Holdings's Interest Expense for the months ended in Mar. 2022 was $-30 Mil. Its Operating Income for the months ended in Mar. 2022 was $-11 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3,776 Mil.

Life Time Group Holdings's Interest Coverage for the quarter that ended in Mar. 2022 is

Life Time Group Holdings 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.

Life Time Group Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(71.695 + 3775.825) / 1569.016
=2.45

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.

Life Time Group Holdings has a Z-score of 0.22, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.22 is in distress zone. This implies bankrupcy 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.


Life Time Group Holdings  (NYSE:LTH) 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.

Life Time Group Holdings 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.


Life Time Group Holdings Financial Strength Related Terms

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


Life Time Group Holdings Business Description

Life Time Group Holdings logo
Industry
Consumer Cyclical » Travel & Leisure NAICS : 713940 SIC : 7997
Traded in Other Exchanges
N/A
Address
2902 Corporate Place, Chanhassen, MN, USA, 55317
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 major metropolitan areas in the United States and Canada.
Executives
Weaver Erik officer: SVP & Controller C/O ORTHO-CLINICAL DIAGNOSTICS, INC. 1001 ROUTE 202 RARITAN NJ 08869
Winkelried Jon 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
Almendares Jimena director C/O LIFE TIME GROUP HOLDINGS, INC. 2902 CORPORATE PLACE CHANHASSEN MN 55317
Green Ltf Holdings Ii Lp director, 10 percent owner 11111 SANTA MONICA BLVD. SUITE 2000 LOS ANGELES CA 90025
Msd Eiv Private Life Time, Llc 10 percent owner 645 FIFTH AVENUE, 21ST FLOOR NEW YORK NY 10022-1650
Msd Life Time Investments, Llc 10 percent owner 645 FIFTH AVENUE, 21ST FLOOR NEW YORK NY 10022-1650
Small Andres director C/O LIFE TIME GROUP HOLDINGS, INC. 2902 CORPORATE PLACE CHANHASSEN MN 55317
Lnk Genpar Iii, L.p. director, 10 percent owner 81 MAIN STREET WHITE PLAINS NY 10601
Lnk Life Time Genpar, L.p. director, 10 percent owner 81 MAIN STREET WHITE PLAINS NY 10601
Singh Ritadhwaja Jebens officer: EVP & Chief Digital Officer C/O LIFE TIME GROUP HOLDINGS, INC. 2902 CORPORATE PLACE CHANHASSEN MN 55317
Javaheri Parham officer: See Remarks C/O LIFE TIME GROUP HOLDINGS, INC. 2902 CORPORATE PLACE CHANHASSEN MN 55317
Lnk Mgp Iii, Llc director, 10 percent owner 81 MAIN STREET WHITE PLAINS NY 10601
Lnk Life Time Fund, L.p. director, 10 percent owner 81 MAIN STREET WHITE PLAINS NY 10601
Partners Group Private Equity Ii, Llc 10 percent owner C/O PARTNERS GROUP (USA) INC. 1114 AVENUE OF THE AMERICAS, 37TH FLOOR NEW YORK NY 10036

Life Time Group Holdings Headlines

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