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BLK (BlackRock) Financial Strength : 6 (As of Jun. 2024)


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What is BlackRock Financial Strength?

BlackRock has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

BlackRock's Interest Coverage for the quarter that ended in Jun. 2024 was 14.31. BlackRock's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.61. As of today, BlackRock's Altman Z-Score is 1.98.


Competitive Comparison of BlackRock's Financial Strength

For the Asset Management subindustry, BlackRock's Financial Strength, along with its competitors' market caps and Financial Strength 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.


BlackRock's Financial Strength Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BlackRock's Financial Strength distribution charts can be found below:

* The bar in red indicates where BlackRock's Financial Strength falls into.



BlackRock Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

BlackRock's Interest Expense for the months ended in Jun. 2024 was $-126 Mil. Its Operating Income for the months ended in Jun. 2024 was $1,803 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $11,678 Mil.

BlackRock's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*1803/-126
=14.31

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

BlackRock's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 11678) / 19220
=0.61

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

BlackRock has a Z-score of 1.98, indicating it is in Grey Zones. This implies that BlackRock is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.98 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


BlackRock  (NYSE:BLK) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

BlackRock has the Financial Strength Rank of 6.


BlackRock Financial Strength Related Terms

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


BlackRock Business Description

Address
50 Hudson Yards, New York, NY, USA, 10001
BlackRock is the largest asset manager in the world, with $10.646 trillion in assets under management at the end of June 2024. Its product mix is fairly diverse, with 55% of managed assets in equity strategies, 26% in fixed income, 9% in multiasset classes, 7% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the US and Canada.
Executives
Mark Wiedman officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
J. Richard Kushel officer: Senior Managing Director BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Laurence Fink director, officer: Chairman and CEO BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Pamela Daley director C/O PATHEON N.V., HERENGRACHT 483, AMSTERDAM P7 1017 BT
Rachel Lord officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Stephen Cohen officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Christopher J. Meade officer: General Counsel and CLO BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Marc D. Comerchero officer: Principal Accounting Officer BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Martin Small officer: CFO & Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Amin H. Nasser director 50 HUDSON YARDS, NEW YORK NY 10001
Caroline Heller officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Manish Mehta officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Mark Mccombe officer: Senior Managing Director BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Robert Kapito director, officer: President 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
William E Ford director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055