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Live Nation Entertainment Altman Z-Score

: 1.05 (As of Today)
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Warning Sign:

Altman Z-score of 1.04 is in distress zone. This implies bankrupcy possibility in the next two years.

Live Nation Entertainment has a Altman Z-Score of 1.05, 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 Live Nation Entertainment's Altman Z-Score or its related term are showing as below:

NYSE:LYV' s Altman Z-Score Range Over the Past 10 Years
Min: 0.17   Med: 1.46   Max: 2.18
Current: 1.04

0.17
2.18

During the past 13 years, Live Nation Entertainment's highest Altman Z-Score was 2.18. The lowest was 0.17. And the median was 1.46.


Live Nation Entertainment Altman Z-Score Historical Data

The historical data trend for Live Nation 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.

Live Nation Entertainment Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.65 1.94 2.09 2.01 0.19

Live Nation Entertainment Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 0.40 0.19 0.17 0.31 0.81

Competitive Comparison

For the Entertainment subindustry, Live Nation 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.

   

Live Nation Entertainment Altman Z-Score Distribution

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

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



Live Nation 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.

Live Nation 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*0.0748+1.4*-0.235+3.3*-0.045+0.6*1.9213+1.0*0.2853
=1.05

* 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 Sep. 2021:
Total Assets was $13,331 Mil.
Total Current Assets was $6,555 Mil.
Total Current Liabilities was $5,558 Mil.
Retained Earnings was $-3,133 Mil.
Pre-Tax Income was 93.288 + -208.175 + -316.333 + -443.284 = $-875 Mil.
Interest Expense was -70.407 + -68.909 + -70.83 + -64.051 = $-274 Mil.
Revenue was 2698.722 + 575.946 + 290.609 + 237.383 = $3,803 Mil.
Market Cap (Today) was $25,692 Mil.
Total Liabilities was $13,373 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
=(6555.291 - 5558.104)/13330.744
=0.0748

X2=Retained Earnings/Total Assets
=-3132.813/13330.744
=-0.235

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-874.504 - -274.197)/13330.744
=-0.045

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=25692.117/13372.52
=1.9213

X5=Revenue/Total Assets
=3802.66/13330.744
=0.2853

The zones of discrimination were as such:

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

Live Nation Entertainment has a Altman Z-Score of 1.05 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.


Live Nation Entertainment  (NYSE:LYV) 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.


Live Nation Entertainment Altman Z-Score Related Terms

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


Live Nation Entertainment Business Description

Live Nation Entertainment logo
Industry
Traded in Other Exchanges
Address
9348 Civic Center Drive, Beverly Hills, CA, USA, 90210
Live Nation is the largest live entertainment firm in the world with over 570 million fans served in 44 countries in 2018 by the company's concert and ticketing platforms. Via either owning, operating, or holding exclusive booking rights, Live Nation controls over 235 venues including the House of Blues, the Hollywood Palladium, and Spark Arena in New Zealand. Live Nation also owns one of the largest ticketing services, Ticketmaster, which sold over 480 million tickets for over 12,000 clients in 2018. The firm's artist management agencies have over 400 clients. This large live entertainment footprint helped Live Nation become one of the largest advertising and sponsorship platforms aimed at music fans. Liberty Media owns 33% of Live Nation, held under its SiriusXM tracking stock.
Executives
Hinson Jeffrey T. director 3721 POTOMAC AVE. DALLAS TX 75205
Rapino Michael director, officer: President & CEO 9348 CIVIC CENTER DRIVE FOURTH FLOOR BEVERLY HILLS CA 90210
Willard Elizabeth Kathleen officer: EVP & Chief Financial Officer 2000 WEST LOOP SOUTH, SUITE 1300 HOUSTON TX 77027
Maffei Gregory B director 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Carter Maverick director C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210
Walden Dana director C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210
Fu Ping director C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210
Hollingsworth Chad director 6262 SUNSET DRIVE MIAMI FL 33143
Iovine Jimmy director C/O LIVE NATION ENTERTAINMENT, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210
Emanuel Ariel director C/O SOURCE INTERLINK COMPANIES, INC. 27500 RIVERVIEW CENTER BLVD, SUITE 400 BONITA SPRINGS FL 34134
Kahan James S director 175 E HOUSTON STREET -- SAN ANTONIO TX 78205-2233
Mays Randall Thomas director CLEAR CHANNEL COMMUNICATIONS 200 EAST BASSE ROAD SAN ANTONIO TX 78209
Shapiro Mark S director C/O RED ZONE LLC 21300 REDSKIN PARK DRIVE ASHBURN VA 20147
Rowles Michael officer: EVP & General Counsel C/O LIVE NATION, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210
Capo Brian officer: Chief Accounting Officer C/O LIVE NATION, INC. 9348 CIVIC CENTER DRIVE BEVERLY HILLS CA 90210

Live Nation Entertainment Headlines

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