Manulife Financial (Manulife Financial) Interest Coverage : 6.44 (As of Dec. 2023)

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What is Manulife Financial Interest Coverage?

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. Manulife Financial's EBIT for the three months ended in Dec. 2023 was $1,873 Mil. Manulife Financial's Interest Expense for the three months ended in Dec. 2023 was $-291 Mil. Manulife Financial's interest coverage for the quarter that ended in Dec. 2023 was 6.44. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Manulife Financial's Interest Coverage or its related term are showing as below:

MFC' s Interest Coverage Range Over the Past 10 Years
Min: 3.2 Med: 5.15 Max: 9.04
Current: 5.15

MFC's Interest Coverage is ranked worse than
72.62% of 325 companies
in the Insurance industry
Industry Median: 13.19 vs MFC: 5.15

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

Manulife Financial Interest Coverage Historical Data

The historical data trend for Manulife 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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Manulife Financial Interest Coverage Chart

Manulife Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

5.72

6.73

9.04

5.15

Manulife 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															3.07	5.68	4.77	3.82	6.44

Competitive Comparison of Manulife Financial's Interest Coverage

For the Insurance - Life subindustry, Manulife 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.

Manulife Financial's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Manulife Financial's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Manulife Financial's Interest Coverage falls into.

Manulife 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.

Manulife 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, Manulife Financial's Interest Expense was $-1,158 Mil. Its EBIT was $5,968 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,052 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5967.501	/	-1158.318
	=	5.15

Manulife Financial's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Manulife Financial's Interest Expense was $-291 Mil. Its EBIT was $1,873 Mil. And its Long-Term Debt & Capital Lease Obligation was $9,052 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1873.137	/	-290.698
	=	6.44

The higher the ratio, the stronger the company's Financial Strength is.

Manulife Financial (NYSE:MFC) 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 .

Manulife Financial Interest Coverage Related Terms

Thank you for viewing the detailed overview of Manulife Financial's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Manulife Financial (Manulife Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Manulife Financial Corp (NYSE:MFC) » Definitions » Interest Coverage

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Address

200 Bloor Street East, Toronto, ON, CAN, M4W 1E5

Website

https://www.manulife.com

Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.35 trillion in assets under management and administration as of June 30, 2023. The U.S. business, which primarily operates under the John Hancock brand, contributes about 30% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 20% of earnings.