Atlantic American (Atlantic American) Financial Strength : 5 (As of Dec. 2023)

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What is Atlantic American Financial Strength?

Atlantic American has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Atlantic American did not have earnings to cover the interest expense. Atlantic American's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.20. Altman Z-Score does not apply to banks and insurance companies.

Atlantic American Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Atlantic American's Interest Expense for the months ended in Dec. 2023 was $-0.9 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $33.7 Mil.

Atlantic American's Interest Coverage for the quarter that ended in Dec. 2023 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Atlantic American's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Dec. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(3.019	+	33.738)	/	186.98
	=	0.20

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* 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.

Atlantic American (NAS:AAME) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Atlantic American has the Financial Strength Rank of 5.

Atlantic American Financial Strength Related Terms

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Atlantic American (Atlantic American) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Atlantic American Corp (NAS:AAME) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

4370 Peachtree Road, N.E., Atlanta, GA, USA, 30319

Website

https://www.atlam.com

Atlantic American Corp operates in specialty markets within the life and health and property and casualty insurance industries. It provides property and casualty insurance including bodily injury and property damage liability coverage, uninsured motorist coverage, and physical damage coverage for commercial accounts. It also provides tailored business automobile insurance coverage, on a multi-year contract basis, to state governments and local municipalities. The company's life and health operations offer a variety of life and supplemental health products including ordinary and term life insurance, Medicare supplement, and other health insurance. It earns revenue from the collection of premiums and investment income.

Executives

Harriett J Robinson	director, 10 percent owner, other: Trustee under Rule 16a-8
Bankers Fidelity Life Insurance Co	other: Wholly owned subsidiary	4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Jeffrey Ross Franklin	officer: CFO	4370 PEACHTREE ROAD NE, ATLANTA GA 30319
Mark E. Preisinger	director	C/O ATLANTIC AMERICAN CORPORATION, 4370 PEACHTREE ROAD, SUITE 200, ATLANTA GA 30319
D Keehln Wheeler	director	3731 WIEUCA ROAD, ATLANTA GA 30342
William H Whaley	director	3980 RANDALL MILL RD NW, ATLANTA GA 30327
Joseph M Scheerer	director	41 PARK AVENUE, APARTMENT #8H, NEW YORK NY 10016
Samuel E Hudgins	director
Edward E Elson	director
Dom H Wyant	director
J Mack Robinson	10 percent owner	4370 PEACHTREE RD, ATLANTA GA 30319
Robin Robinson Howell	director	3656 TUXEDO ROAD NW, ATLANTA GA 30305
Sample John G Jr	officer: Senior Vice President & CFO
Howell Hilton H Jr	director, officer: Chairman, President & CEO	4370 PEACHTREE ROAD, N.E., ATLANTA GA 30319
Scott G Thompson	director, officer: Pres & CEO Am. Sou. Ins. Co.