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Liberty Global Altman Z-Score

: 1.64 (As of Today)
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Warning Sign:

Altman Z-score of 1.64 is in distress zone. This implies bankruptcy possibility in the next two years.

Liberty Global has a Altman Z-Score of 1.64, 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 Global's Altman Z-Score or its related term are showing as below:

LBTYK' s Altman Z-Score Range Over the Past 10 Years
Min: -0.23   Med: 0.43   Max: 2.27
Current: 1.64

During the past 13 years, Liberty Global's highest Altman Z-Score was 2.27. The lowest was -0.23. And the median was 0.43.


Liberty Global Altman Z-Score Historical Data

The historical data trend for Liberty Global'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 Global Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.26 0.25 0.71 0.49 2.27

Liberty Global Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.02 2.22 2.27 2.24 1.62

Competitive Comparison

For the Telecom Services subindustry, Liberty Global'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.

   

Liberty Global Altman Z-Score Distribution

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

* The bar in red indicates where Liberty Global's Altman Z-Score falls into.



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

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0457+1.4*0.4975+3.3*0.1139+0.6*0.5711+1.0*0.1682
=1.64

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $44,160 Mil.
Total Current Assets was $5,605 Mil.
Total Current Liabilities was $3,586 Mil.
Retained Earnings was $21,969 Mil.
Pre-Tax Income was 2345.8 + 1156.9 + 667.4 + 317.8 = $4,488 Mil.
Interest Expense was -132.9 + -134.2 + -134 + -140.9 = $-542 Mil.
Revenue was 1754.2 + 1853.3 + 1920.8 + 1901.4 = $7,430 Mil.
Market Cap (Today) was $11,053 Mil.
Total Liabilities was $19,354 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
=(5604.5 - 3586.3)/44159.6
=0.0457

X2=Retained Earnings/Total Assets
=21969.4/44159.6
=0.4975

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(4487.9 - -542)/44159.6
=0.1139

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=11052.657/19354
=0.5711

X5=Revenue/Total Assets
=7429.7/44159.6
=0.1682

The zones of discrimination were as such:

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

Liberty Global has a Altman Z-Score of 1.64 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 Global  (NAS:LBTYK) 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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Liberty Global Altman Z-Score Related Terms

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


Liberty Global Business Description

Liberty Global logo
Address
161 Hammersmith Road, Griffin House, London, GBR, W6 8BS
Liberty Global is a holding company with interests in cable and telecom companies in the U.K., Netherlands, Belgium, Switzerland, Ireland, and Slovakia. Liberty is the owner of the main cable network in each of these geographies and has pursued a strategy since 2016 to merge or partner with mobile-network-operators to be able to offer converged services. Liberty also owns minority stakes in other media, entertainment, and cloud companies.
Executives
Drew Marisa D director 161 HAMMERSMITH ROAD LONDON X0 XO
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Salvato Andrea officer: SVP, CHIEF DEVELOPMENT OFFICER 161 HAMMERSMITH ROAD LONDON X0 W6 8BS
Rodriguez Enrique officer: EVP, Chief Technology Officer 1221 AVENUE OF THE AMERICAS 37TH FLOOR NEW YORK NY 10020
Malone John C director, 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Waldron Jason officer: SVP & CAO 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Wargo J David director C/O WARGO & CO 712 FIFTH AVENUE 41ST FLOOR NEW YORK NY 10019
Gould Paul A director 711 FIFTH AVENUE 9TH FLOOR NEW YORK NY 10022
Cole John P Jr director 1919 PENNSYLVANIA AVE N.W. STE 200 WASHINGTON DC 20006
Dvorak Bernard G officer: EVP & Co-CFO C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Karsten Diederik officer: EVP, European BB Ops C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Sparkman J C director 201 EAST SANDPOINTE 8TH FLOOR SANTA ANA CA 92707
Curtis Miranda director C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112

Liberty Global Headlines

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