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Liberty Formula One Group Altman Z-Score

: 1.69 (As of Today)
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Warning Sign:

Altman Z-score of 1.71 is in distress zone. This implies bankrupcy possibility in the next two years.

Liberty Formula One Group has a Altman Z-Score of 1.69, 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 Formula One Group's Altman Z-Score or its related term are showing as below:

OTCPK:FWONB' s Altman Z-Score Range Over the Past 10 Years
Min: -0.3   Med: 1.05   Max: 2.1
Current: 1.71

-0.3
2.1

During the past 11 years, Liberty Formula One Group's highest Altman Z-Score was 2.10. The lowest was -0.30. And the median was 1.05.


Liberty Formula One Group Altman Z-Score Historical Data

The historical data trend for Liberty Formula One Group'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 Formula One Group 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 1.55 0.88 0.92 1.12 1.25

Liberty Formula One Group 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 0.94 1.06 1.25 1.17 1.40

Competitive Comparison

For the Broadcasting subindustry, Liberty Formula One Group'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 Formula One Group Altman Z-Score Distribution

For the Media - Diversified industry and Communication Services sector, Liberty Formula One Group's Altman Z-Score distribution charts can be found below:

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



Liberty Formula One Group 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 Formula One Group'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*0.1395+1.4*0+3.3*0+0.6*2.2927+1.0*0.1466
=1.69

* 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 $12,029 Mil.
Total Current Assets was $2,527 Mil.
Total Current Liabilities was $849 Mil.
Retained Earnings was $0 Mil.
Pre-Tax Income was -7 + -6 + -11 + -100 = $-124 Mil.
Interest Expense was -29 + -32 + -32 + -31 = $-124 Mil.
Revenue was 501 + 180 + 485 + 597 = $1,763 Mil.
Market Cap (Today) was $12,475 Mil.
Total Liabilities was $5,441 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
=(2527 - 849)/12029
=0.1395

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-124 - -124)/12029
=0

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=12474.815/5441
=2.2927

X5=Revenue/Total Assets
=1763/12029
=0.1466

The zones of discrimination were as such:

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

Liberty Formula One Group has a Altman Z-Score of 1.69 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 Formula One Group  (OTCPK:FWONB) 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 Formula One Group Altman Z-Score Related Terms

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


Liberty Formula One Group Business Description

Liberty Formula One Group logo
Industry
Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
Liberty Formula One Group controls the exclusive commercial and promotional rights to the FIA Formula One World Championship series, and the monetization of those rights is the primary business of the group. The firm is responsible for development and promotion of the Formula One race series in concert with its three partners: the FIA (the regulatory body), the teams that participate in the series, and the series' commercial partners, which include the race promoters, broadcasters, sponsors, and advertisers. Formula One Group is a subsidiary of Liberty Media Corporation, which purchased the firm in January 2017. Formula One stock is a tracking stock for the assets under Formula One Group with Liberty Media.
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