Liberty Story

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LILA -- USA Stock  

USD 13.52  0.05  0.37%

Liberty Latin America is scheduled to announce its earnings tomorrow. Liberty Latin Average Equity is projected to increase significantly based on the last few years of reporting. The past year's Average Equity was at 3.51 Billion. The current year Free Cash Flow is expected to grow to about 408.3 M, whereas Average Assets are forecasted to decline to about 15.8 B. While some millenniums are indifferent towards communication services space, it makes sense to go over Liberty Latin America as a unique investment alternative.
Published over a month ago
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How much will Liberty Latin owe in March?
Liberty Latin America currently holds 9 B in liabilities with Debt to Equity (D/E) ratio of 2.55, implying Liberty Latin greatly relies on financing operations through barrowing. The entity has a current ratio of 1.49, which is within standard range for the sector.
Liberty Latin financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Liberty Latin, including all of Liberty Latin's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Liberty Latin assets, the company is considered highly leveraged. Understanding the composition and structure of overall Liberty Latin debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Liberty Total Debt

Liberty Latin America liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Liberty Latin America has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Liberty Latin balance sheet include debt obligations and money owed to different Liberty Latin vendors, workers, and loan providers. Below is the chart of Liberty main long-term debt accounts currently reported on its balance sheet.
You can use Liberty Latin America financial leverage analysis tool to get a better grip on understanding its financial position

How important is Liberty Latin's Liquidity

Liberty Latin financial leverage refers to using borrowed capital as a funding source to finance Liberty Latin America ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Liberty Latin financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Liberty Latin's total debt and its cash.

Exercise or conversion by Zook Brian D of 5490 shares of Liberty Latin subject to Rule 16b-3

Legal trades by Liberty Latin insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Liberty insider trading alert for exercise of restricted share units c by Zook Brian D, MD CHIEF ACCOUNTING OFFICER, on 5th of April 2021. This event was filed by Liberty Latin America Ltd with SEC on 2021-04-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On Liberty Latin America

The firm reported the previous year's revenue of 3.64 B. Net Loss for the year was (616 M) with profit before overhead, payroll, taxes, and interest of 2.98 B.

Liabilities Breakdown

Current Liabilities
9.6 B
Long-Term Liabilities
Total Liabilities11.34 Billion
Current Liabilities1.71 Billion
Long-Term Liabilities9.63 Billion
Tax Liabilities531.24 Million

Liberty may start a recoup in March

Current Market Risk Adjusted Performance is up to -0.05. Price may slip again. Liberty Latin America exhibits very low volatility with skewness of 0.51 and kurtosis of 0.75. However, we advise investors to further study Liberty Latin America technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Liberty Latin's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Liberty Latin's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Liberty Latin America

Whereas some firms within the telecom services industry are still a little expensive, even after the recent corrections, Liberty Latin may offer a potential longer-term growth to investors. To sum up, as of the 27th of February 2021, we believe that at this point, Liberty Latin is undervalued with close to average odds of financial turmoil within the next 2 years. Our final buy-hold-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Liberty Latin America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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