Marsh & McLennan (Marsh & McLennan) Interest Coverage

: 12.11 (As of Mar. 2024)

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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 Operating Income by its Interest Expense. Marsh & McLennan's Operating Income for the three months ended in Mar. 2024 was $1,925 Mil. Marsh & McLennan's Interest Expense for the three months ended in Mar. 2024 was $-159 Mil. Marsh & McLennan's interest coverage for the quarter that ended in Mar. 2024 was 12.11. The higher the ratio, the stronger the company's financial strength is.

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

MMC' s Interest Coverage Range Over the Past 10 Years
Min: 5.11 Med: 9.62 Max: 14.84
Current: 9.14

MMC's Interest Coverage is ranked worse than
60.06% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs MMC: 9.14

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

Marsh & McLennan Interest Coverage Historical Data

The historical data trend for Marsh & McLennan'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 5.11 [6] => 5.95 [7] => 9.71 [8] => 9.13 [9] => 9.14 )

Marsh & McLennan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

5.11

5.95

9.71

9.13

9.14

Marsh & McLennan Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage																12.69	9.98	6.87	7.30	12.11

Competitive Comparison

For the Insurance Brokers subindustry, Marsh & McLennan'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.

Marsh & McLennan Interest Coverage Distribution

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

* The bar in red indicates where Marsh & McLennan's Interest Coverage falls into.

Marsh & McLennan 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 Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income 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.

Marsh & McLennan'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, Marsh & McLennan's Interest Expense was $-578 Mil. Its Operating Income was $5,282 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,505 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5282	/	-578
	=	9.14

Marsh & McLennan's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Marsh & McLennan's Interest Expense was $-159 Mil. Its Operating Income was $1,925 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,900 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	1925	/	-159
	=	12.11

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

Marsh & McLennan (NYSE:MMC) 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 .

Marsh & McLennan Interest Coverage Related Terms

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

Marsh & McLennan (Marsh & McLennan) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Marsh & McLennan Companies Inc (NYSE:MMC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MMC:Mexico MSN:Germany MSN:Germany M1MC34:Brazil MMCO:Austria MMC:Argentina

Address

1166 Avenue of the Americas, New York, NY, USA, 10036-2774

Website

https://www.marshmclennan.com

Marsh McLennan is a professional services firm that provides advice and solutions in the areas of risk, strategy, and human capital. The company operates through two main segments: risk and insurance services and consulting. In risk and insurance services, the firm offers services via Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist). The consulting division comprises Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). About half of its revenue is generated outside the U.S.

Executives

Oscar Fanjul	director	C/O OMEGA CAPITAL, S.L., PASEO DE LA CASTELLANA, 28, MADRID U3 28046
John Jude Jones	officer: Chief Marketing Officer	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Dean Michael Klisura	officer: President & CEO, Guy Carpenter	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Steven A Mills	director	IBM CORPORATION, 294 ROUTE 100, SOMERS NY 10589
Mark C Mcgivney	officer: Chief Financial Officer
Judith Hartmann	director	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ray G Young	director	77 WEST WACKER DR., SUITE 4600, CHICAGO IL 60601
Stacy Mills	officer: Vice President and Controller	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENENUE OF THE AMERICAS, NEW YORK NY 11102
Paul Beswick	officer: SVP, Chief Information Officer	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martin South	officer: President & CEO, Marsh	1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Martine Ferland	officer: President and CEO, Mercer	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Katherine Brennan	officer: SVP and General Counsel	1166 AVENUE OF THE AMERICAS, 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Daniel S Glaser	officer: Chairman & CEO, Marsh	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hafize Gaye Erkan	director	727 FIFTH AVENUE, NEW YORK NY 10022
Marc D Oken	director	C/O FALFURRIAS CAPITAL PARTNERS, 100 N. TRYON STREET, SUITE 5120, CHARLOTTE NC 28202