SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'rank_balancesheet' WTW (Willis Towers Watson) Financial Strength
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Willis Towers Watson (Willis Towers Watson) Financial Strength

: 5 (As of Dec. 2023)
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Willis Towers Watson 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.

Willis Towers Watson's Interest Coverage for the quarter that ended in Dec. 2023 was 13.59. Willis Towers Watson's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.51. As of today, Willis Towers Watson's Altman Z-Score is 1.43.


Competitive Comparison

For the Insurance Brokers subindustry, Willis Towers Watson's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Willis Towers Watson Financial Strength Distribution

For the Insurance industry and Financial Services sector, Willis Towers Watson's Financial Strength distribution charts can be found below:

* The bar in red indicates where Willis Towers Watson's Financial Strength falls into.



Willis Towers Watson 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:

Willis Towers Watson's Interest Expense for the months ended in Dec. 2023 was $-63 Mil. Its Operating Income for the months ended in Dec. 2023 was $856 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5,166 Mil.

Willis Towers Watson's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*856/-63
=13.59

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

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

Willis Towers Watson'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
=(775 + 5166) / 11656
=0.51

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.

Willis Towers Watson has a Z-score of 1.43, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.43 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Willis Towers Watson  (NAS:WTW) 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.

Willis Towers Watson has the Financial Strength Rank of 5.


Willis Towers Watson Financial Strength Related Terms

Thank you for viewing the detailed overview of Willis Towers Watson's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Willis Towers Watson (Willis Towers Watson) Business Description

Traded in Other Exchanges
Address
C/o Willis Group Ltd, 51 Lime Street, London, GBR, EC3M 7DQ
In January 2016, Towers Watson and Willis Group merged to form Willis Towers Watson, a global advisory, insurance brokerage, and solutions company. The company operates in two business segments: health, wealth, and career (its consulting operations) and risk and brokering (its brokerage operations). It has about 47,000 employees.
Executives
Pamela Thomson-hall officer: Head of International 51 LIME STREET, LONDON X0 EC3M 7DQ
Anne Pullum officer: Head of Strategy and CAO C/O WILLIS TOWERS WATSON, 200 LIBERTY ST, 7TH FLOOR, NEW YORK NY 10281
Julie Jarecke Gebauer officer: Head of Human Capital&Benefits JUPITER SATURN HOLDING CO, 875 THIRD AVENUE, NEW YORK NY 10022
Fredric J Tomczyk director TORONTO DOMINION CENTRE, PO BOX 1, TORONTO A6 M5K IA2
Stephen M. Chipman director 3101 DREXEL DRIVE, DALLAS TX 75205
Jacqueline Hunt director 53 SOUTH GREEN, MATTISHALL, NORFOLK X0 N220 3JY
Anne Donovan Bodnar officer: Head of Human Resources 901 N. GLEBE ROAD, ARLINGTON VA 22203
Gene H Wickes officer: Head of Exchange Solutions 901 N GLEBE ROAD, ARLINGTON VA 22203
Brendan R Oneill director C/O IMPERIAL CHEMICAL INDUSTRIES PLC, 20 MANCHESTER SQUARE, LONDON X0 W1U 3AN
Paul C Reilly director 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Alexis Faber officer: Chief Operating Officer 3340 PLAYERS CLUB PARKWAY, SUITE 200, MEMPHIS TN 38125
Andrew Jay Krasner officer: Chief Financial Officer 1450 BRICKELL AVENUE, SUITE 1600, MIAMI FL 33131
Fumbi F. Chima director 44 THORNBURY CT., 36-38 CHEPSTOW VILLAS, LONDON X0 WII 2RE
Michelle R Swanback director 7001 EAST BELLEVIEW AVENUE, DENVER CO 80237
Inga K Beale director C/O CRAWFORD & COMPANY, 5335 TRIANGLE PARKWAY, PEACHTREE CORNERS GA 30092

Willis Towers Watson (Willis Towers Watson) Headlines