CI Financial (TSX:CIX) Interest Coverage : 2.67 (As of Dec. 2023)

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What is CI 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 Operating Income by its Interest Expense. CI Financial's Operating Income for the three months ended in Dec. 2023 was C$117 Mil. CI Financial's Interest Expense for the three months ended in Dec. 2023 was C$-44 Mil. CI Financial's interest coverage for the quarter that ended in Dec. 2023 was 2.67. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. CI Financial Corp interest coverage is 3.55, which is low.

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

TSX:CIX' s Interest Coverage Range Over the Past 10 Years
Min: 3.55 Med: 17.86 Max: 57.08
Current: 3.55

TSX:CIX's Interest Coverage is ranked worse than
78.84% of 449 companies
in the Asset Management industry
Industry Median: 38.64 vs TSX:CIX: 3.55

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

CI Financial Interest Coverage Historical Data

The historical data trend for CI 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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CI Financial Interest Coverage Chart

CI Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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14.93

12.10

8.54

5.57

3.55

CI 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															4.69	3.83	3.32	4.44	2.67

Competitive Comparison of CI Financial's Interest Coverage

For the Asset Management subindustry, CI 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.

CI Financial's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, CI Financial's Interest Coverage distribution charts can be found below:

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

CI 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 Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income 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.

CI 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, CI Financial's Interest Expense was C$-177 Mil. Its Operating Income was C$628 Mil. And its Long-Term Debt & Capital Lease Obligation was C$3,355 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	628.01	/	-176.998
	=	3.55

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

Here, for the three months ended in Dec. 2023, CI Financial's Interest Expense was C$-44 Mil. Its Operating Income was C$117 Mil. And its Long-Term Debt & Capital Lease Obligation was C$3,355 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	117.15	/	-43.892
	=	2.67

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

CI Financial (TSX:CIX) 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 .

CI Financial Interest Coverage Related Terms

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

CI Financial (TSX:CIX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » CI Financial Corp (TSX:CIX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CIXXF:USA CF7:Germany

Address

15 York Street, 2nd Floor, Legal Department, Toronto, ON, CAN, M5J 0A3

Website

https://www.cifinancial.com

CI Financial is a diversified provider of wealth management products and services, primarily in the Canadian market. The company had CAD 119.0 billion in core assets under management, another CAD 278.5 billion in wealth management assets under advisement, and CAD 23.4 billion in assets under custody at the end of September 2023, making it one of the largest nonbank affiliated asset managers in Canada. The company operates its fund business through CI Global Asset Management, which offers a broad selection of investment funds. On the wealth management side, the company operates through CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, as well as a large group of acquired U.S.-based advisors, providing financial advice primarily to high-net-worth clients.