Ageas/ NV (FRA:FO4N) Financial Strength : 5 (As of Dec. 2023)

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What is Ageas/ NV Financial Strength?

Ageas/ NV 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.

Ageas/ NV's Interest Coverage for the quarter that ended in Dec. 2023 was 5.41. Ageas/ NV's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.44. Altman Z-Score does not apply to banks and insurance companies.

Ageas/ NV 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:

Ageas/ NV's Interest Expense for the months ended in Dec. 2023 was €-148 Mil. Its Operating Income for the months ended in Dec. 2023 was €0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €4,585 Mil.

Ageas/ NV'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.

Ageas/ NV'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
	=	(0	+	4585)	/	10376
	=	0.44

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.

Ageas/ NV (FRA:FO4N) 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.

Ageas/ NV has the Financial Strength Rank of 5.

Ageas/ NV Financial Strength Related Terms

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Ageas/ NV (FRA:FO4N) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Ageas SA/ NV (FRA:FO4N) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

AGESY:USA AGS:Mexico AGS:Italy AGSb:UK 0Q99:UK AGS:Belgium AGS:Austria

Address

Rue du Marquis 1/Markiesstraat 1, Box 7, Brussels, BEL, 1000

Website

https://www.ageas.com

Ageas was spun out of Fortis during the financial crisis after a consortium including Banco Santander and Royal Bank of Scotland launched a failed bid for ABN Amro. The takeover was badly timed and ambitious, and to fund it Fortis started selling noncore divisions while writing down collateralised debt. As Fortis' capital began to decline, the company initiated a rights issue and the long-held promised dividend was suspended. As Fortis' share price began to decline and financial market conditions continued to worsen, with a series of leadership changes customers began to withdraw deposits. Fortis was approached by the government and sold its domestic banking operations to the Belgium government, and BNP Paribas and was asked to spin off its insurance and asset management divisions.