Brookfield Asset Management (Brookfield Asset Management) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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 Operating Income by its Interest Expense. Brookfield Asset Management's Operating Income for the three months ended in Dec. 2023 was $-17.0 Mil. Brookfield Asset Management's Interest Expense for the three months ended in Dec. 2023 was $8.0 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Brookfield Asset Management's Interest Coverage or its related term are showing as below:

BAM' s Interest Coverage Range Over the Past 10 Years
Min: 0.33 Med: 2.18 Max: 5.41
Current: 0.72

BAM's Interest Coverage is ranked worse than
94.65% of 449 companies
in the Asset Management industry
Industry Median: 37.91 vs BAM: 0.72

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

Brookfield Asset Management Interest Coverage Historical Data

The historical data trend for Brookfield Asset Management'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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Brookfield Asset Management Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.62

5.41

0.33

0.73

Brookfield Asset Management Quarterly Data
	Dec20	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage							-	0.93	0.63	0.86	-

Competitive Comparison

For the Asset Management subindustry, Brookfield Asset Management'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.

Brookfield Asset Management Interest Coverage Distribution

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

* The bar in red indicates where Brookfield Asset Management's Interest Coverage falls into.

Brookfield Asset Management 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.

Brookfield Asset Management'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, Brookfield Asset Management's Interest Expense was $-71.0 Mil. Its Operating Income was $52.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	52	/	-71
	=	0.73

Brookfield Asset Management's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Brookfield Asset Management's Interest Expense was $8.0 Mil. Its Operating Income was $-17.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

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

Brookfield Asset Management (NYSE:BAM) 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 .

Brookfield Asset Management Interest Coverage Related Terms

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Brookfield Asset Management (Brookfield Asset Management) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Asset Management Ltd (NYSE:BAM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RW5:Germany RW5:Germany BAM:Canada

Address

181 Bay Street, Suite 100, Brookfield Place, Toronto, ON, CAN, M5H 2T3

Website

https://www.brookfield.com

Brookfield Asset Management Ltd engages in providing alternative asset management services through an ownership interest in a leading global alternative asset management business. It offers a range of alternative investment products to investors around the world including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors.