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Ameriprise Financial Interest Coverage

: 17.02 (As of Jun. 2021)
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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. Ameriprise Financial's EBIT for the three months ended in Jun. 2021 was $766 Mil. Ameriprise Financial's Interest Expense for the three months ended in Jun. 2021 was $-45 Mil. Ameriprise Financial's interest coverage for the quarter that ended in Jun. 2021 was 17.02. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:AMP' s Interest Coverage Range Over the Past 10 Years
Min: 4.89   Med: 7.35   Max: 9.68
Current: 7.67

4.89
9.68

NYSE:AMP's Interest Coverage is ranked lower than
62% of the 47 Companies
in the Asset Management industry.

( Industry Median: 23.59 vs. NYSE:AMP: 7.67 )

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


Ameriprise Financial Interest Coverage Historical Data

The historical data trend for Ameriprise 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.

* Premium members only.

Ameriprise Financial Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.68 9.68 8.44 7.38 9.29

Ameriprise Financial Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 5.32 11.49 17.02

Competitive Comparison

For the Asset Management subindustry, Ameriprise 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.

   

Ameriprise Financial Interest Coverage Distribution

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

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



Ameriprise 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.


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

Ameriprise Financial's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Ameriprise Financial's Interest Expense was $-221 Mil. Its EBIT was $2,052 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,744 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*2052/-221
=9.29

Ameriprise Financial's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Ameriprise Financial's Interest Expense was $-45 Mil. Its EBIT was $766 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,391 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*766/-45
=17.02

* 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.

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


Ameriprise Financial  (NYSE:AMP) 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 .


Ameriprise Financial Interest Coverage Related Terms

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


Ameriprise Financial Business Description

Ameriprise Financial logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Traded in Other Exchanges
Address
1099 Ameriprise Financial Center, Minneapolis, MN, USA, 55474
Spun off from American Express in 2005, Ameriprise Financial has emerged as a major player in the U.S. market for asset and wealth management, with around $1.1 trillion in total assets under management and advisement at the end of 2020. Ameriprise has one of the largest branded advisor networks in the industry, and over 70% of the company's revenue comes from its asset and wealth management segments. Ameriprise has reduced its exposure to insurance with the sale of its auto and home insurance business in 2019 and discontinuing the sale of its proprietary fixed annuities in 2020. Around 90% of the company's pretax earnings are from the United States.
Executives
Smyth Gerard P. officer: EVP Technology and CIO 1099 AMERIPRISE FINANCIAL MINNEAPOLIS MN 55474
Woerner John Robert officer: Pres Ins & Chief Strat Officer AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Williams Christopher J director 650 FIFTH AVE 10TH FL NEW YORK NY 10019
Truscott William F officer: CEO, Global Asset Management AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Sweeney Joseph Edward officer: Pres-AWM Products & Services AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Moore Colin officer: EVP & Global CIO C/O PUTNAM LLC ONE POST OFFICE SQ BOSTON MA 02109
Sharpe Robert Francis Jr director AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Greenberg Lon R director 460 NORTH GULPH ROAD KING OF PRUSSIA PA 19406
Noddle Jeffrey director 11840 VALLEY VIEW ROAD EDEN PRAIRIE MN 55344
Walter W Edward director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WALTER W EDWARD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Neal Blixt Dianne director 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Digeso Amy director C/O THE ESTEE LAUDER COMPANIES INC. 767 FIFTH AVENUE NEW YORK NY 10153
Shea Brian T director ONE PERSHING PLAZA 95 CHRISTOPHER COLUMBUS DRIVE JERSEY CITY NJ 07399
Hutt John R. officer: Sr Vice Pres and Controller 1099 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Thissen Karen Wilson officer: Executive VP and GC 1098 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474

Ameriprise Financial Headlines

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