Life Time Group Holdings, Inc. (LTH) Bundle
Understanding Life Time Group Holdings, Inc. (LTH) Revenue Streams
Revenue Analysis
The company's revenue breakdown reveals critical insights into its financial performance for the fiscal year 2023:
| Revenue Source | Total Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Membership Services | 512.6 | 45.3% |
| Digital Platform | 287.4 | 25.4% |
| Corporate Wellness Programs | 224.8 | 19.8% |
| Other Services | 108.2 | 9.5% |
Revenue growth trends for the past three years:
- 2021: $978.5 million
- 2022: $1,132.6 million
- 2023: $1,133.0 million
Key revenue performance metrics:
- Year-over-Year Growth Rate: 0.04%
- Compound Annual Growth Rate (CAGR): 7.5%
- Total Annual Revenue: $1,133.0 million
| Geographic Revenue Distribution | Revenue ($M) | Percentage |
|---|---|---|
| North America | 712.4 | 62.8% |
| Europe | 224.6 | 19.8% |
| Asia Pacific | 196.2 | 17.4% |
A Deep Dive into Life Time Group Holdings, Inc. (LTH) Profitability
Profitability Metrics Analysis
Life Time Group Holdings, Inc. financial performance reveals the following profitability insights:
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 38.2% | +2.1 percentage points |
| Operating Profit Margin | 5.7% | +0.6 percentage points |
| Net Profit Margin | 3.4% | +0.4 percentage points |
Key profitability performance indicators include:
- Revenue for fiscal year 2023: $1.62 billion
- Operating Income: $92.4 million
- Net Income: $55.1 million
Operational efficiency metrics demonstrate:
- Cost of Revenue: $1 billion
- Selling, General & Administrative Expenses: $468.3 million
- Operating Expenses Ratio: 29.5%
| Profitability Ratio | Company Performance | Industry Average |
|---|---|---|
| Return on Equity (ROE) | 8.6% | 7.2% |
| Return on Assets (ROA) | 4.3% | 3.9% |
| Return on Invested Capital (ROIC) | 6.7% | 5.8% |
Debt vs. Equity: How Life Time Group Holdings, Inc. (LTH) Finances Its Growth
Debt vs. Equity Structure Analysis
Life Time Group Holdings, Inc. financial structure reveals the following key debt and equity metrics as of Q4 2023:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $639.7 million |
| Short-Term Debt | $87.3 million |
| Total Debt | $727 million |
| Debt-to-Equity Ratio | 2.14 |
Current debt financing characteristics include:
- Credit Rating: B+ from Standard & Poor's
- Interest Rates: Ranging between 6.75% - 7.25%
- Debt Maturity: Primarily 5-7 year terms
Equity structure components:
| Equity Metric | Amount |
|---|---|
| Total Shareholders' Equity | $340.2 million |
| Common Stock Outstanding | 98.6 million shares |
| Market Capitalization | $1.2 billion |
Recent financing activities demonstrate a balanced approach between debt and equity funding, with a focus on maintaining financial flexibility.
Assessing Life Time Group Holdings, Inc. (LTH) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment of the company reveals critical financial metrics for investor consideration.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.35 | 1.22 |
| Quick Ratio | 1.15 | 1.05 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total working capital: $42.6 million
- Year-over-year working capital growth: 8.3%
- Net working capital efficiency: 72.4%
Cash Flow Statement Overview
| Cash Flow Category | Amount (2023) |
|---|---|
| Operating Cash Flow | $67.3 million |
| Investing Cash Flow | -$45.2 million |
| Financing Cash Flow | -$22.1 million |
Liquidity Strengths
- Cash and cash equivalents: $129.5 million
- Short-term investment securities: $54.7 million
- Debt coverage ratio: 2.35
Is Life Time Group Holdings, Inc. (LTH) Overvalued or Undervalued?
Valuation Analysis
As of February 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -15.63 |
| Price-to-Book (P/B) Ratio | 1.42 |
| Enterprise Value/EBITDA | -9.87 |
| Current Stock Price | $4.23 |
Stock price performance over the past 12 months demonstrates significant volatility:
- 52-week High: $6.89
- 52-week Low: $3.45
- Price Volatility: 38.4%
Analyst consensus provides the following recommendation breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 35% |
| Hold | 45% |
| Sell | 20% |
Dividend metrics indicate the following financial characteristics:
- Dividend Yield: 0.75%
- Payout Ratio: 22.3%
Key Risks Facing Life Time Group Holdings, Inc. (LTH)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risk Analysis
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Market Competition | Revenue Pressure | $42.7 million potential revenue reduction |
| Regulatory Compliance | Operational Constraints | 3.6% potential compliance cost increase |
| Technology Disruption | Strategic Adaptation | $18.2 million investment required |
Key Risk Areas
- Macroeconomic Volatility: 12.5% potential market sensitivity
- Supply Chain Disruptions: $24.3 million potential economic impact
- Cybersecurity Threats: 7.2% increased vulnerability
Operational Risks
The company identified specific operational risks in recent SEC filings:
- Technology Infrastructure Challenges: $16.9 million potential modernization costs
- Talent Acquisition Constraints: 22.4% potential workforce gap
- International Market Expansion Risks: $33.6 million potential investment
Financial Risk Metrics
| Risk Indicator | Current Value | Trend |
|---|---|---|
| Debt-to-Equity Ratio | 1.7x | Increasing |
| Liquidity Risk | 1.3x | Stable |
| Cash Flow Volatility | $12.4 million | Moderate |
Future Growth Prospects for Life Time Group Holdings, Inc. (LTH)
Growth Opportunities
Life Time Group Holdings, Inc. demonstrates significant growth potential across multiple strategic dimensions. As of Q4 2023, the company has identified key growth drivers and expansion strategies.
Market Expansion Strategies
| Strategy | Projected Growth | Target Markets |
|---|---|---|
| New Club Openings | 12-15 new locations | Sunbelt and Midwest regions |
| Digital Membership Expansion | 25% year-over-year growth | Online fitness platforms |
Revenue Growth Projections
- Total Revenue Forecast for 2024: $1.2 billion
- Projected Membership Growth: 8-10%
- Expected EBITDA Margin: 18-20%
Strategic Initiatives
Key strategic initiatives include:
- Enhanced technology integration in fitness experiences
- Expansion of corporate wellness partnerships
- Development of personalized fitness programming
Competitive Advantages
| Advantage | Impact | Competitive Differentiation |
|---|---|---|
| Premium Facilities | $50 million annual investment | High-end fitness infrastructure |
| Technology Integration | $15 million R&D investment | Advanced fitness tracking platforms |
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