LTMLATAM Airlines Group S.A.
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (A) and typical volatility.
Investment-grade balance sheet. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -34% · now 26% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can LTM take a bad year?
LATAM Airlines Group S.A. carries $5.87B of net debt at 1.44× EBITDA: a load its earnings can carry.
Net debt · as at FY2025 · under two and a half years of EBITDA, comfortable
- Net debt / EBITDA
- 1.44×
Net debt / EBITDA · 1.72× a year ago · the load is coming down
- Interest cover
- 3.24×
Interest cover · operating profit covers the interest bill, with room to spare
- Annualised volatility
- 36%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2025
- $8.09B
- Cash and short-term investments
- $2.22B
- Net debt
- $5.87B
- EBITDA, trailing twelve months
- $4.07B
- Operating profit, trailing twelve months
- $2.34B
- Debt / equity
- 6.01×
- Total debt / EBITDA
- 1.99×
- Annualised volatilitytwo years of daily moves
- 36%
- Worst drawdown on file
- −34%
- Below its 52-week high
- 26%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.