MetLife (MetLife) Interest Coverage

: 4.50 (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. MetLife's EBIT for the three months ended in Dec. 2023 was $1,210 Mil. MetLife's Interest Expense for the three months ended in Dec. 2023 was $-269 Mil. MetLife's interest coverage for the quarter that ended in Dec. 2023 was 4.50. The higher the ratio, the stronger the company's financial strength is.

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

MET' s Interest Coverage Range Over the Past 10 Years
Min: 3.07 Med: 7.2 Max: 10.26
Current: 3.07

MET's Interest Coverage is ranked worse than
82.66% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs MET: 3.07

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

MetLife Interest Coverage Historical Data

The historical data trend for MetLife'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.

MetLife Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

8.12

8.59

10.26

7.78

3.07

MetLife Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																9.17	2.01	2.68	3.02	4.50

Competitive Comparison

For the Insurance - Life subindustry, MetLife'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.

MetLife Interest Coverage Distribution

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

* The bar in red indicates where MetLife's Interest Coverage falls into.

MetLife 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.

MetLife'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, MetLife's Interest Expense was $-1,045 Mil. Its EBIT was $3,207 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,709 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3207	/	-1045
	=	3.07

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

Here, for the three months ended in Dec. 2023, MetLife's Interest Expense was $-269 Mil. Its EBIT was $1,210 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,709 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1210	/	-269
	=	4.50

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

MetLife (NYSE:MET) 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 .

MetLife Interest Coverage Related Terms

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

MetLife (MetLife) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » MetLife Inc (NYSE:MET) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

METpF.PFD:USA METpE.PFD:USA METpA.PFD:USA MET:Mexico MWZ:Germany MWZ:Germany METB34:Brazil

Address

200 Park Avenue, New York, NY, USA, 10166-0188

Website

https://www.metlife.com

MetLife is one of the largest life insurers in the U.S. by assets and provides a variety of insurance and financial services products. The company is organized into five segments: U.S., Asia, Latin America, EMEA, and MetLife Holdings. The U.S. business contributes around 41% of earnings and is broken into the group benefits segment and the retirement solutions segment. The Asia segment contributes around 28% of earnings and is mainly composed of the Japan business with increasing contributions from India, China, and Bangladesh. The company also holds leading market positions in Mexico and Chile with the Latin America segment contributing around 6% of earnings. The EMEA and the MetLife segments contribute around 5% and 20% of earnings, respectively.

Executives

Marlene Debel	officer: EVP & Chief Risk Officer	METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Jeh C. Johnson	director	77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177
Bill Pappas	officer: EVP, Global Tech. & Ops.	METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Robert Glenn Hubbard	director	100 BELLEVUE PARKWAY, WILMINGTON DE 19809
Susan M Podlogar	officer: EVP & Chief HR Officer	200 PARK AVENUE, NEW YORK NY 10166
Steven J Goulart	officer: EVP & Chief Investment Officer	200 PARK AVENUE, NEW YORK NY 10166
Michel Khalaf	director, officer: President & CEO	200 PARK AVENUE, NEW YORK NY 10166
Carla A Harris	director	702 SW 8TH STREET, BENTONVILLE AR 72716
William E Kennard	director	METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Catherine R Kinney	director	C/O QTS REALTY TRUST INC., 12851 FOSTER STREET, OVERLAND PARK KS 66213
Cheryl W Grise	director	NORTHEAST UTILITIES, 107 SELDEN STREET, BERLIN CT 06037
Gerald L Hassell	director
Mark A Weinberger	director	METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
David L Herzog	director	180 MAIDEN LANE, NEW YORK NY 10038
Denise M Morrison	director	METLIFE, 200 PARK AVENUE, NEW YORK NY 10166