Prudential Financial (Prudential Financial) Interest Coverage

: 4.76 (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. Prudential Financial's EBIT for the three months ended in Dec. 2023 was $2,104 Mil. Prudential Financial's Interest Expense for the three months ended in Dec. 2023 was $-442 Mil. Prudential Financial's interest coverage for the quarter that ended in Dec. 2023 was 4.76. 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:

PRU' s Interest Coverage Range Over the Past 10 Years
Min: 2.74 Med: 2.74 Max: 2.74
Current: 2.74

PRU's Interest Coverage is ranked worse than
85.14% of 323 companies
in the Insurance industry
Industry Median: 13.52 vs PRU: 2.74

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 Interest Coverage Historical Data

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.

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Prudential Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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N/A

2.74

Prudential Financial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	5.19	2.35	-	4.76

Competitive Comparison

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.

Prudential Financial Interest Coverage Distribution

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.

Prudential Financial 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 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 Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Prudential Financial's Interest Expense was $-442 Mil. Its EBIT was $2,104 Mil. And its Long-Term Debt & Capital Lease Obligation was $20,001 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2104	/	-442
	=	4.76

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 .

Prudential Financial Interest Coverage Related Terms

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.

Prudential Financial (Prudential Financial) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

PRU:Mexico PLL:Germany PLL:Germany P1DT34:Brazil PRU:Austria

Address

751 Broad Street, Newark, NJ, USA, 07102

Website

https://www.investor.prudential.com

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 15% of its earnings and has over $1.5 trillion in assets under management. The U.S. businesses are responsible for about 45% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

Executives

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