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Legal & General Group (Legal & General Group) Interest Coverage

: 0 (At Loss) (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. Legal & General Group's EBIT for the six months ended in Dec. 2023 was $-94 Mil. Legal & General Group's Interest Expense for the six months ended in Dec. 2023 was $-220 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

LGGNY' s Interest Coverage Range Over the Past 10 Years
Min: 1.22   Med: 8.48   Max: 10.39
Current: 1.22

LGGNY's Interest Coverage is ranked worse than
89.96% of 448 companies
in the Asset Management industry
Industry Median: 38 vs LGGNY: 1.22

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

Legal & General Group Interest Coverage Historical Data

The historical data trend for Legal & General Group'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.

Legal & General Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.75 5.69 9.46 3.99 1.22

Legal & General Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.53 5.81 2.18 2.87 -
Competitive Comparison

For the Asset Management subindustry, Legal & General Group'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.

Legal & General Group Interest Coverage Distribution

For the Asset Management industry and Financial Services sector, Legal & General Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Legal & General Group's Interest Coverage falls into.


Legal & General Group 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.

Legal & General Group'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, Legal & General Group's Interest Expense was $-439 Mil. Its EBIT was $535 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,406 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*535.443/-439.241
=1.22

Legal & General Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Legal & General Group's Interest Expense was $-220 Mil. Its EBIT was $-94 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,406 Mil.

Legal & General Group did not have earnings to cover the interest expense.

* 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.

Legal & General Group  (OTCPK:LGGNY) 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 .

Legal & General Group Interest Coverage Related Terms

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

Legal & General Group (Legal & General Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Legal & General Group PLC (OTCPK:LGGNY) » Definitions » Interest Coverage
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LSE:SMT LSE:SDR LSE:ICP LSE:MNG LSE:FCIT LSE:PCT LSE:ATST LSE:HL. LSE:UKW LSE:EMG BLK BX KKR OSTO:INVE A APO TSX:BN AMP BK OSTO:EQT XSWX:PGHN
Traded in Other Exchanges
LGGNF:USA LGENl:UK LGEN:UK LGI:Germany
Address
One Coleman Street, London, GBR, EC2R 5AA
Website
https://www.legalandgeneralgroup.com
Legal & General Group PLC operates across four broad business areas of retirement, investment management, capital investment, and insurance. The retirement business provides provide guaranteed retirement income for corporate pension scheme members. Investment Management business provides investment management services for both individuals and corporations, including managing pension funds. Capital investment use customers' pension assets, as well as the group's shareholder capital, to make long-term investments in assets such as clean energy, housing, and SME finance. The Insurance business provides various types of insurance, including life and disability insurance. The company has a global presence but most of its assets under management are derived from the United Kingdom and Europe.