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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. Prudential Financial's EBIT for the three months ended in Mar. 2024 was $1,919 Mil. Prudential Financial's Interest Expense for the three months ended in Mar. 2024 was $-529 Mil. Prudential Financial's interest coverage for the quarter that ended in Mar. 2024 was 3.63. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Prudential Financial's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for Prudential Financial'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.
Prudential Financial Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | N/A | N/A | N/A | - | 2.74 |
Prudential Financial Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Interest Coverage | Get a 7-Day Free Trial | 5.19 | 2.35 | - | 4.76 | 3.63 |
For the Insurance - Life subindustry, Prudential Financial'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.
For the Insurance industry and Financial Services sector, Prudential Financial's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Prudential Financial's Interest Coverage falls into.
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.
Prudential Financial'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, Prudential Financial's Interest Expense was $-1,766 Mil. Its EBIT was $4,838 Mil. And its Long-Term Debt & Capital Lease Obligation was $20,001 Mil.
Interest Coverage | = | -1 | * | EBIT (A: Dec. 2023 ) | / | Interest Expense (A: Dec. 2023 ) |
= | -1 | * | 4838 | / | -1766 | |
= | 2.74 |
Prudential Financial's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as
Here, for the three months ended in Mar. 2024, Prudential Financial's Interest Expense was $-529 Mil. Its EBIT was $1,919 Mil. And its Long-Term Debt & Capital Lease Obligation was $20,245 Mil.
Interest Coverage | = | -1 | * | EBIT (Q: Mar. 2024 ) | / | Interest Expense (Q: Mar. 2024 ) |
= | -1 | * | 1919 | / | -529 | |
= | 3.63 |
* 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.
Prudential Financial (NYSE:PRU) 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 .
Thank you for viewing the detailed overview of Prudential Financial's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Kenneth Tanji | officer: EVP and CFO | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Timothy L Schmidt | officer: Senior Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Kathleen Murphy | director | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Caroline Feeney | officer: Executive Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Ann M Kappler | officer: EVP and General Counsel | PRUDENTIAL FINANCIAL, INC., 751 BROAD STREET, 5TH FLOOR, NEWARK NJ 07102 |
Robert Axel | officer: SVP and Controller | 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Andrew F Sullivan | officer: Executive Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Nicholas C Silitch | officer: Senior Vice President | 751 BROAD STREET, 5TH FLR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Scott Sleyster | officer: Senior Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Robert Falzon | officer: EVP and CFO | 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Charles F Lowrey | officer: Executive Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
Michael Todman | director | C/O TMA LIMITED, LLC, 500 RENAISSANCE DRIVE, SUITE 103B, ST. JOSEPH MI 49085 |
Wendy Elizabeth Jones | director | 2025 HAMILTON AVE, SAN JOSE CA 95125 |
Stacey Goodman | officer: Executive Vice President | C/O CIT GROUP INC., ATTN:GENERAL COUNSEL, 1 CIT DRIVE, LIVINGSTON NJ 07039 |
Candace Woods | officer: Senior Vice President | 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102 |
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