American Financial Group (American Financial Group) Interest Coverage

: 18.63 (As of Dec. 2023)

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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. American Financial Group's EBIT for the three months ended in Dec. 2023 was $354 Mil. American Financial Group's Interest Expense for the three months ended in Dec. 2023 was $-19 Mil. American Financial Group's interest coverage for the quarter that ended in Dec. 2023 was 18.63. The higher the ratio, the stronger the company's financial strength is.

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

AFG' s Interest Coverage Range Over the Past 10 Years
Min: 4.85 Med: 10.77 Max: 15.2
Current: 15.12

AFG's Interest Coverage is ranked better than
51.7% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs AFG: 15.12

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

American Financial Group Interest Coverage Historical Data

The historical data trend for American Financial Group'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.

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American Financial Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

10.32

4.85

15.20

14.21

15.12

American Financial Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																18.30	14.89	14.42	12.53	18.63

Competitive Comparison

For the Insurance - Property & Casualty subindustry, American Financial Group'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.

American Financial Group Interest Coverage Distribution

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

* The bar in red indicates where American Financial Group's Interest Coverage falls into.

American Financial Group 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.

American Financial Group'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, American Financial Group's Interest Expense was $-76 Mil. Its EBIT was $1,149 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,475 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1149	/	-76
	=	15.12

American Financial Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, American Financial Group's Interest Expense was $-19 Mil. Its EBIT was $354 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,475 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	354	/	-19
	=	18.63

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

American Financial Group (NYSE:AFG) 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 .

American Financial Group Interest Coverage Related Terms

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

American Financial Group (American Financial Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » American Financial Group Inc (NYSE:AFG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

QFI:Germany

Address

301 East Fourth Street, Cincinnati, OH, USA, 45202

Website

https://www.afginc.com

American Financial Group Inc is a holding company that is engaged primarily in property and casualty insurance services. The company has a focus on specialized commercial products for businesses. American also has annuity operations that are focused on sales of traditional fixed and fixed-indexed annuities in the education, bank, and individual markets. American's insurance operations are conducted through the Great American Insurance Group. The group writes business in all 50 of the United States, primarily through independent agents and brokers.

Executives

Amy Y Murray	director	3429 ARNOLD STREET, CINCINNATI OH 45202
William W Verity	director	301 EAST FOURTH STREET, CINCINNATI OH 45202
Terry S Jacobs	director	301 EAST FOURTH STREET, CINCINNATI OH 45202
Von Lehman John I	director	301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
John B Berding	director	301 E. FOURTH ST., 27TH FLOOR, CINCINNATI OH 45202
Mark A Weiss	officer: Senior VP & General Counsel	301 EAST FOURTH STREET, CINCINNATI OH 45202
Michelle A Gillis	officer: Sr. Vice President	301 E. FOURTH STREET, 39TH FLOOR, CINCINNATI OH 45202
Brian S. Hertzman	other: principal financial officer	301 EAST FOURTH STREET, CINCINNATI OH 45202
Thompson David Lawrence Jr	officer: President of Subsidiary	301 EAST FOURTH STREET, CINCINNATI OH 45202
James E Evans	director, officer: Sr. V. Pres. & Gen. Counsel	301 E FOURTH STREET, CINCINNATI OH 45202
Lindner Carl H Iii	director, officer: Co-President	14TH FLOOR PROVIDENT TOWER, ONE EAST FOURTH STREET, CINCINNATI OH 45202
S Craig Lindner	director, officer: Co-President	ONE EAST FOURTH STREET, CINCINNATI OH 45202
Vito C Peraino	officer: Sr. VP & General Counsel	301 EAST FOURTH STREET, CINCINNATI OH 45202
Evans N Nwankwo	director	301 EAST FOURTH STREET, 38TH FLOOR, CINCINNATI OH 45202
Kenneth C Ambrecht	director	250 EAST FIFTH STREET, CINCINNATI OH 45202