Prudential (Prudential) Interest Coverage : 11.60 (As of Dec. 2023)

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What is Prudential Interest Coverage?

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's EBIT for the six months ended in Dec. 2023 was $1,009 Mil. Prudential's Interest Expense for the six months ended in Dec. 2023 was $-87 Mil. Prudential's interest coverage for the quarter that ended in Dec. 2023 was 11.60. The higher the ratio, the stronger the company's financial strength is.

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

PUKPF' s Interest Coverage Range Over the Past 10 Years
Min: 6.35 Med: 8.76 Max: 13.19
Current: 13.19

PUKPF's Interest Coverage is ranked worse than
50.31% of 322 companies
in the Insurance industry
Industry Median: 13.355 vs PUKPF: 13.19

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 Interest Coverage Historical Data

The historical data trend for Prudential'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.

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Prudential Interest Coverage Chart

Prudential Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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6.35

10.20

9.16

13.19

Prudential 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	Get a 7-Day Free Trial															9.62	-	8.26	14.82	11.60

Competitive Comparison of Prudential's Interest Coverage

For the Insurance - Life subindustry, Prudential'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.

Prudential's Interest Coverage Distribution in the Insurance Industry

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

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

Prudential 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.

Prudential'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's Interest Expense was $-172 Mil. Its EBIT was $2,269 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,175 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2269	/	-172
	=	13.19

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

Here, for the six months ended in Dec. 2023, Prudential's Interest Expense was $-87 Mil. Its EBIT was $1,009 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,175 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1009	/	-87
	=	11.60

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

Prudential (OTCPK:PUKPF) 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 .

Prudential Interest Coverage Related Terms

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

Prudential (Prudential) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Prudential PLC (OTCPK:PUKPF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PUK:USA K6S:Singapore 02378:Hong Kong PRUl:UK PRU:UK PRU:Germany P1UK34:Brazil

Address

1 Angel Court, London, GBR, EC2R 7AG

Website

https://www.prudentialplc.com

Originally established as Prudential Mutual Assurance, Investment, and Loan Association in 1848, Prudential plc has moved on a lot since then. Set up to sell life insurance and loans to the middle and then the industrializing and urbanizing working classes, the company subsequently diversified into Europe and then North America with the purchase of Jackson National Life in around 1985. During its time as owner of Jackson, Prudential focused on building out a simple chassis-style product portfolio where customers could choose a variety of add-ons. The company also became renowned for its focus on building requisite internal capabilities to support its strong product offerings, including compelling technology and a large and well-trained distribution force.