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ALL (Allstate) Interest Coverage : 14.63 (As of Sep. 2024)


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What is Allstate Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Allstate's EBIT for the three months ended in Sep. 2024 was $1,522 Mil. Allstate's Interest Expense for the three months ended in Sep. 2024 was $-104 Mil. Allstate's interest coverage for the quarter that ended in Sep. 2024 was 14.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Allstate's Interest Coverage or its related term are showing as below:

ALL' s Interest Coverage Range Over the Past 10 Years
Min: 0.08   Med: 14.16   Max: 22.39
Current: 10.49


ALL's Interest Coverage is ranked worse than
57.63% of 321 companies
in the Insurance industry
Industry Median: 14.49 vs ALL: 10.49

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Allstate Interest Coverage Historical Data

The historical data trend for Allstate's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Allstate Interest Coverage Chart

Allstate Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.65 22.39 20.59 - 0.08

Allstate Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.76 18.07 16.09 5.39 14.63

Competitive Comparison of Allstate's Interest Coverage

For the Insurance - Property & Casualty subindustry, Allstate's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Allstate's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Allstate's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Allstate's Interest Coverage falls into.



Allstate Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage=-1* EBIT /Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Allstate's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Allstate's Interest Expense was $-379 Mil. Its EBIT was $31 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,942 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*31/-379
=0.08

Allstate's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Allstate's Interest Expense was $-104 Mil. Its EBIT was $1,522 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,083 Mil.

Interest Coverage=-1* EBIT (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*1522/-104
=14.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Allstate  (NYSE:ALL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Allstate Interest Coverage Related Terms

Thank you for viewing the detailed overview of Allstate's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Allstate Business Description

Address
3100 Sanders Road, Northbrook, IL, USA, 60062
Allstate is one of the largest us property-casualty insurers in the us. Personal auto represents the largest percentage of revenue, but the company offers homeowners insurance and other insurance products. Allstate products are sold in North America primarily by about 6,000 exclusive agents.
Executives
John E Dugenske other: EVP & CIO, Allstate Ins. Co. 2775 SANDERS ROAD, NORTHBROOK IL 60062
Thomas J Wilson officer: President and COO 2775 SANDERS RD, NORTHBROOK IL 60062
Robert Toohey officer: EVP, Chief HR Officer - AIC 2775 SANDERS ROAD, NORTHBROOK IL 60062
Elizabeth Brady other: Executive Vice President - AIC 2775 SANDERS ROAD, NORTHBROOK IL 60062
Suren Gupta other: EVP Allstate Insurance Company 2775 SANDERS ROAD, NORTHBROOK IL 60062
Judith A Sprieser director USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
John C Pintozzi officer: SVP, Controller, and CAO 2775 SANDERS ROAD, NORTHBROOK IL 60062
Mario Rizzo officer: EVP & Chief Financial Officer 2775 SANDERS ROAD, NORTHBROOK IL 60062
Mark Q Prindiville other: EVP & Chief Risk Officer - AIC 2775 SANDERS ROAD, NORTHBROOK IL 60062
Zulfikar Jeevanjee other: EVP & CTO - AIC 3100 SANDERS ROAD, NORTHBROOK IL 60062
Jesse E Merten officer: EVP & Chief Risk Officer (AIC) 2775 SANDERS ROAD, NORTHBROOK IL 60062
Monica J Turner director 3100 SANDERS ROAD, NORTHBROOK IL 60062
Christine M. Debiase officer: EVP, CLO, GC & Secretary 11225 NORTH COMMUNITY HOUSE ROAD, CHARLOTTE NC 28277
Terrance Williams officer: AIC-President Protec Prod&Svcs 7184 BIDDICK, NEW ALBANY OH 43054
Glenn T Shapiro other: Pres Allstate Personal Lines 2775 SANDERS ROAD, NORTHBROOK IL 60062