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Lions Gate Entertainment Altman Z-Score

: 0.65 (As of Today)
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Warning Sign:

Altman Z-score of 0.65 is in distress zone. This implies bankrupcy possibility in the next two years.

Lions Gate Entertainment has a Altman Z-Score of 0.65, 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 Lions Gate Entertainment's Altman Z-Score or its related term are showing as below:

NYSE:LGF.B' s Altman Z-Score Range Over the Past 10 Years
Min: -0.28   Med: 0.95   Max: 2.59
Current: 0.65

-0.28
2.59

During the past 13 years, Lions Gate Entertainment's highest Altman Z-Score was 2.59. The lowest was -0.28. And the median was 0.95.


Lions Gate Entertainment Altman Z-Score Historical Data

The historical data trend for Lions Gate Entertainment'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.

Lions Gate Entertainment Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.80 1.11 0.75 0.59 0.69

Lions Gate Entertainment Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 0.65 0.65 0.67 0.69 0.76

Competitive Comparison

For the Entertainment subindustry, Lions Gate Entertainment'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.

   

Lions Gate Entertainment Altman Z-Score Distribution

For the Media - Diversified industry and Communication Services sector, Lions Gate Entertainment's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Lions Gate Entertainment's Altman Z-Score falls into.



Lions Gate Entertainment 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.

Lions Gate Entertainment'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*-0.0855+1.4*-0.0169+3.3*0.0106+0.6*0.5507+1.0*0.409
=0.65

* 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. 2021:
Total Assets was $8,213 Mil.
Total Current Assets was $853 Mil.
Total Current Liabilities was $1,556 Mil.
Retained Earnings was $-139 Mil.
Pre-Tax Income was -45.2 + -31.4 + -10.2 + -23.2 = $-110 Mil.
Interest Expense was -41.7 + -76.9 + -32.9 + -45.7 = $-197 Mil.
Revenue was 901.2 + 876.5 + 836.4 + 745 = $3,359 Mil.
Market Cap (Today) was $3,014 Mil.
Total Liabilities was $5,474 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
=(853.3 - 1555.6)/8212.9
=-0.0855

X2=Retained Earnings/Total Assets
=-139.1/8212.9
=-0.0169

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-110 - -197.2)/8212.9
=0.0106

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=3014.172/5473.5
=0.5507

X5=Revenue/Total Assets
=3359.1/8212.9
=0.409

The zones of discrimination were as such:

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

Lions Gate Entertainment has a Altman Z-Score of 0.65 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.


Lions Gate Entertainment  (NYSE:LGF.B) 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.


Lions Gate Entertainment Altman Z-Score Related Terms

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


Lions Gate Entertainment Business Description

Lions Gate Entertainment logo
Industry
Traded in Other Exchanges
Address
250 Howe Street, 20th Floor, Vancouver, BC, CAN, V6C 3R8
Lions Gate Entertainment Corp is a filmed entertainment studio with a presence in motion pictures, television programming, home entertainment, and digitally delivered content. The company releases more than 25 motion pictures theatrically per year, which includes films developed in-house, as well as films acquired from third parties.
Executives
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Mccaw Susan director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Crawford Gordon director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Rachesky Mark H Md director, 10 percent owner 40 WEST 57TH STREET, 24TH FLOOR NEW YORK NY 10019
Fine Emily director 1345 AVENUE OF THE AMERICAS 42ND FLOOR NEW YORK NY 10105
Clyburn Mignon L director 12601 PLANTSIDE DRIVE LOUISVILLE KY 40299
Ostolaza Yvette director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Simmons Hardwick director 880 CARILLON PARKWAY ST. PETERSBURG FL 33716
Simm Daryl director 437 MADISON AVENUE NEW YORK NY 10022
Barge James W officer: Chief Financial Officer VIACOM INC. 1515 BROADWAY NEW YORK NY 10036
Liberty Global Ventures Ltd 10 percent owner GRIFFIN HOUSE, 161 HAMMERSMITH ROAD LONDON X0 W6 8BS
Liberty Global Plc 10 percent owner 1550 WEWATTA ST, SUITE 1000 DENVER CO 80202
Goldsmith Brian officer: Chief Operating Officer LIONS GATE ENTERTAINMENT CORP. 2700 COLORADO AVENUE SANTA MONICA CA 90292
Evrensel Arthur director C/O 2200-1055 WEST HASTINGS STREET VANCOUVER A1 V6E 2E9
Feltheimer Jon director, officer: Chief Executive Officer 2700 COLORADO AVENUE STE 200 SANTA MONICA CA 90404

Lions Gate Entertainment Headlines

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