Liberty Latin America (NAS:LILA) Altman Z-Score

: 0.13 (As of Today)

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Warning Sign:

Altman Z-score of 0.13 is in distress zone. This implies bankruptcy possibility in the next two years.

Liberty Latin America has a Altman Z-Score of 0.13, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Liberty Latin America's Altman Z-Score or its related term are showing as below:

LILA' s Altman Z-Score Range Over the Past 10 Years
Min: 0.1 Med: 0.3 Max: 1.01
Current: 0.13

During the past 9 years, Liberty Latin America's highest Altman Z-Score was 1.01. The lowest was 0.10. And the median was 0.30.

Liberty Latin America Altman Z-Score Historical Data

The historical data trend for Liberty Latin America's Altman Z-Score 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.

* Premium members only.

Liberty Latin America Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Altman Z-Score

0.31

0.27

0.40

0.13

0.29

Liberty Latin America Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Altman Z-Score																0.48	0.29	0.29	0.13	0.10

Competitive Comparison

For the Telecom Services subindustry, Liberty Latin America's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.

Annual Data Quarterly Data

Liberty Latin America Altman Z-Score Distribution

For the Telecommunication Services industry and Communication Services sector, Liberty Latin America's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Liberty Latin America's Altman Z-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z-Score's extreme value range as defined by GuruFocus.

Liberty Latin America Altman Z-Score Calculation

Altman 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.

Liberty Latin America's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.0344

1.4

-0.1994

3.3

-0.0173

0.6

0.1707

1.0

0.3268

0.13

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $15,063 Mil.
Total Current Assets was $2,109 Mil.
Total Current Liabilities was $1,591 Mil.
Retained Earnings was $-3,004 Mil.
Pre-Tax Income was 121.9 + -466.2 + 116.7 + -579.3 = $-807 Mil.
Interest Expense was -149.2 + -136.9 + -129.7 + -130.2 = $-546 Mil.
Revenue was 1222 + 1217.6 + 1218.7 + 1264.8 = $4,923 Mil.
Market Cap (Today) was $2,140 Mil.
Total Liabilities was $12,537 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(2108.6 - 1590.8)	/	15062.9
	=	0.0344

X2	=	Retained Earnings	/	Total Assets
	=	-3004.2	/	15062.9
	=	-0.1994

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(-806.9 - -546)	/	15062.9
	=	-0.0173

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	2140.342	/	12537
	=	0.1707

X5	=	Revenue	/	Total Assets
	=	4923.1	/	15062.9
	=	0.3268

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Liberty Latin America has a Altman Z-Score of 0.13 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Liberty Latin America (NAS:LILA) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Be Aware

Altman Z-Score does not apply to financial companies.

Liberty Latin America Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Liberty Latin America's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Liberty Latin America (NAS:LILA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Liberty Latin America Ltd (NAS:LILA) » Definitions » Altman Z-Score

Comparable Companies

Traded in Other Exchanges

LILAB:USA LILAK:USA 1LLC:Germany

Address

2 Church Street, Hamilton, BMU, HM 11

Website

https://www.lla.com

Liberty Latin America Ltd is a telecommunications company. It is a provider of video, broadband internet, fixed-line telephony and mobile services to residential and business customers. The company's reportable segments include C&W Caribbean and Networks, C&W Panama, VTR, Liberty Puerto Rico and Costa Rica.

Executives

Eric Louis Zinterhofer	director	C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Balan Nair	director, officer: President and CEO	901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Daniel E. Sanchez	director	C/O DISCOVERY, INC., 8403 COLESVILLE ROAD, SILVER SPRING MD 20910
Vivek Khemka	officer: SVP, CT&PO	C/O DISH NETWORK CORPORATION, 9601 S MERIDIAN BLVD, ENGLEWOOD CO 80112
Michael T Fries	director, officer: Executive Chairman	C/O LIBERTY GLOBAL, INC., 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Christopher J Noyes	officer: SVP, CHIEF FINANCIAL OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
John C Malone	10 percent owner	12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Paul A Gould	director	711 FIFTH AVENUE, 9TH FLOOR, NEW YORK NY 10022
Bracken Charles H R	director	C/O UPC SERVICES LTD, 12 STANHOPE GATE, LONDON ENGLAND X0 W1Y 5LB
Betzalel Kenigsztein	officer: SVP, CHIEF OPERATING OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Miranda Curtis	director	C/O LIBERTY GLOBAL, INC., 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
John M Winter	officer: SVP, CLO AND SECRETARY	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Brendan J Paddick	director	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Angoitia Alfonso De	director	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202
Brian D Zook	officer: MD, CHIEF ACCOUNTING OFFICER	1550 WEWATTA STREET, SUITE 1000, DENVER CO 80202