Life Time Group Stock Beneish M Score

LTH Stock  USD 24.06  0.56  2.27%   
This module uses fundamental data of Life Time to approximate the value of its Beneish M Score. Life Time M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Life Time Piotroski F Score and Life Time Altman Z Score analysis.
  
As of now, Life Time's Debt To Equity is decreasing as compared to previous years. The Life Time's current Interest Debt Per Share is estimated to increase to 12.33, while Long Term Debt is projected to decrease to under 1.6 B. As of now, Life Time's PB Ratio is decreasing as compared to previous years. The Life Time's current EV To Sales is estimated to increase to 5.20, while Days Sales Outstanding is projected to decrease to 8.95.
At this time, it appears that Life Time Group is an unlikely manipulator. The earnings manipulation may begin if Life Time's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Life Time executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Life Time's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.88
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.84

Focus
Asset Quality

0.92

Focus
Expense Coverage

1.25

Focus
Gross Margin Strengs

1.31

Focus
Accruals Factor

1.25

Focus
Depreciation Resistance

1.04

Focus
Net Sales Growth

0.82

Focus
Financial Leverage Condition

1.1

Focus

Life Time Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Life Time's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables41.1 M59.3 M
Way Down
Slightly volatile
Total Revenue1.8 B2.2 B
Significantly Down
Very volatile
Total Assets7.2 B7.9 B
Significantly Down
Slightly volatile
Total Current Assets130.2 M174.5 M
Way Down
Slightly volatile
Non Current Assets Total6.9 B6.9 B
Slightly Up
Slightly volatile
Property Plant Equipment2.9 B2.6 B
Moderately Up
Slightly volatile
Depreciation And Amortization261.5 M244.4 M
Notably Up
Slightly volatile
Selling General Administrative490.8 M476.3 M
Fairly Up
Slightly volatile
Total Current Liabilities496.2 M557.2 M
Fairly Down
Slightly volatile
Non Current Liabilities Total4.6 B5.1 B
Significantly Down
Slightly volatile
Net Debt4.3 B4.2 B
Fairly Up
Slightly volatile
Short Term Debt114.4 M132.6 M
Fairly Down
Slightly volatile
Long Term Debt1.6 B1.9 B
Fairly Down
Slightly volatile
Gross Profit Margin0.420.3198
Significantly Up
Slightly volatile

Life Time Group Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Life Time's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Life Time in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Life Time's degree of accounting gimmicks and manipulations.

About Life Time Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

1.85 Billion

As of now, Life Time's Other Operating Expenses is increasing as compared to previous years.

Life Time Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Life Time. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Total Revenue1.9B948.4M1.3B1.8B2.2B1.8B
Operating Income168.3M(359.1M)(495.2M)110.6M233.2M244.8M
Investments(477.8M)(6.1M)(269.9M)(243.5M)(609.6M)(640.1M)
Gross Profit Margin0.450.30.360.410.320.42

Life Time ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Life Time's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Life Time's managers, analysts, and investors.
Environmental
Governance
Social

About Life Time Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Life Time Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Life Time using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Life Time Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Life Time Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Life Time's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Life Time Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Life Time Group Stock:
Check out Life Time Piotroski F Score and Life Time Altman Z Score analysis.
You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Life Time. If investors know Life will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Life Time listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
3.75
Earnings Share
0.68
Revenue Per Share
12.648
Quarterly Revenue Growth
0.185
Return On Assets
0.0294
The market value of Life Time Group is measured differently than its book value, which is the value of Life that is recorded on the company's balance sheet. Investors also form their own opinion of Life Time's value that differs from its market value or its book value, called intrinsic value, which is Life Time's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Life Time's market value can be influenced by many factors that don't directly affect Life Time's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Life Time's value and its price as these two are different measures arrived at by different means. Investors typically determine if Life Time is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Life Time's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.