Challenger (Challenger) Debt-to-Equity

: 1.81 (As of Dec. 2023)

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Challenger's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,697.7 Mil. Challenger's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $34.3 Mil. Challenger's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $2,610.5 Mil. Challenger's debt to equity for the quarter that ended in Dec. 2023 was 1.81.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Challenger's Debt-to-Equity or its related term are showing as below:

CFIGY' s Debt-to-Equity Range Over the Past 10 Years
Min: 1.41 Med: 1.95 Max: 2.46
Current: 1.81

During the past 13 years, the highest Debt-to-Equity Ratio of Challenger was 2.46. The lowest was 1.41. And the median was 1.95.

CFIGY's Debt-to-Equity is ranked worse than
94.26% of 383 companies
in the Insurance industry
Industry Median: 0.24 vs CFIGY: 1.81

Challenger Debt-to-Equity Historical Data

The historical data trend for Challenger's Debt-to-Equity 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.

* Premium members only.

Challenger Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Debt-to-Equity

1.97

2.40

1.67

1.47

1.42

Challenger Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity																1.41	1.47	1.42	1.42	1.81

Competitive Comparison

For the Insurance - Life subindustry, Challenger's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.

Challenger Debt-to-Equity Distribution

For the Insurance industry and Financial Services sector, Challenger's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Challenger's Debt-to-Equity falls into.

Challenger Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Challenger's Debt to Equity Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(3014.832	+	939.06)	/	2792.215
	=	1.42

Challenger's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(4697.657	+	34.337)	/	2610.509
	=	1.81

Challenger (OTCPK:CFIGY) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Challenger Debt-to-Equity Related Terms

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Challenger (Challenger) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Challenger Ltd (OTCPK:CFIGY) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

CFIGF:USA CGFPC.PFD:Australia CGFPB.PFD:Australia CGF:Australia

Address

5 Martin Place, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.challenger.com.au

Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an up-front lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.