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The Carlyle Group (STU:3VU) Financial Strength : 3 (As of Mar. 2024)


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What is The Carlyle Group Financial Strength?

The Carlyle Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

The Carlyle Group Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

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.

GuruFocus does not calculate The Carlyle Group's interest coverage with the available data. The Carlyle Group's debt to revenue ratio for the quarter that ended in Mar. 2024 was 3.88. Altman Z-Score does not apply to banks and insurance companies.

The Carlyle Group 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:

The Carlyle Group's Interest Expense for the months ended in Mar. 2024 was €-143 Mil. Its Operating Income for the months ended in Mar. 2024 was €0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €8,553 Mil.

The Carlyle Group's Interest Coverage for the quarter that ended in Mar. 2024 is

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

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

The Carlyle Group's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 8553.24) / 2203.584
=3.88

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.

Altman Z-Score does not apply to banks and insurance companies.

* 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 Carlyle Group  (STU:3VU) 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.

The Carlyle Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

The Carlyle Group Financial Strength Related Terms

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The Carlyle Group (STU:3VU) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » The Carlyle Group Inc (STU:3VU) » Definitions » Financial Strength
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Traded in Other Exchanges
CG:USA CG:Mexico 3VU:Germany
Address
1001 Pennsylvania Avenue, NW, Washington, DC, USA, 20004-2505
Website
https://www.carlyle.com
The Carlyle Group is one of the world's largest alternative-asset managers, with $382.3 billion in total assets under management, including $273.0 billion in fee-earning AUM, at the end of September 2023. The company has three core business segments: private equity, which includes private equity, real estate, infrastructure, and natural resources funds (accounting for 40% of fee-earning AUM and 64% of base management fees during 2023), global credit (46% and 25%) and investment solutions (14% and 11%). The firm primarily serves institutional investors and high-net-worth individuals. Carlyle operates through 29 offices across five continents, serving more than 2,900 active carry fund investors from 88 countries.