Breaking Down Life Time Group Holdings, Inc. (LTH) Financial Health: Key Insights for Investors

Breaking Down Life Time Group Holdings, Inc. (LTH) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Leisure | NYSE

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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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