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Chubb Interest Coverage

: 12.25 (As of Jun. 2022)
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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. Chubb's EBIT for the three months ended in Jun. 2022 was $1,642 Mil. Chubb's Interest Expense for the three months ended in Jun. 2022 was $-134 Mil. Chubb's interest coverage for the quarter that ended in Jun. 2022 was 12.25. The higher the ratio, the stronger the company's financial strength is.

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

CB' s Interest Coverage Range Over the Past 10 Years
Min: 7.13   Med: 11.25   Max: 20.95
Current: 17.41


CB's Interest Coverage is ranked better than
56.57% of 327 companies
in the Insurance industry
Industry Median: 14.64 vs CB: 17.41

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


Chubb Interest Coverage Historical Data

The historical data trend for Chubb'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.

Chubb Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.13 8.27 10.51 9.07 20.95

Chubb Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 22.16 17.81 21.20 18.64 12.25

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Chubb'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.

   

Chubb Interest Coverage Distribution

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

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



Chubb 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.

Chubb's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Chubb's Interest Expense was $-492 Mil. Its EBIT was $10,308 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,169 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*10308/-492
=20.95

Chubb's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Chubb's Interest Expense was $-134 Mil. Its EBIT was $1,642 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,311 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1642/-134
=12.25

* 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.


Chubb  (NYSE:CB) 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 .


Chubb Interest Coverage Related Terms

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


Chubb Business Description

Chubb logo
Traded in Other Exchanges
Address
Baerengasse 32, Zurich, CHE, CH-8001
ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination makes the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.
Executives
Bonanno Kathleen director 3000 TANNERY WAY SANTA CLARA CA 95054
Enns Peter C. officer: Executive Vice President and* THE CHUBB BUILDING 17 WOODBOURNE AVENUE HAMILTON D0 HM 08
Tellez Luis director DESC, S.A. DE C.V PASEO DE LOS TAMARINDOS TORRE PISO 32 CUAJIMALPA O5 05120
Townsend Frances F director C/O BAKER BOTTS LLP THE WARNER, 1299 PENNSYLVANIA AVE., NW WASHINGTON DC 20004-2400
Hugin Robert J director C/O THE MEDICINES CO 8 CAMPUS DR PARSIPPANY NJ 07054
Hagan Annmarie T officer: Chief Accounting Officer TWO LIBERTY PLACE 1601 CHESTNUT STREET PHILADELPHIA PA 19192
Ortega Juan Luis officer: Executive Vice President* CHUBB AVENUE OF THE AMERICAS NEW YORK NY 10036
Andrade Juan C officer: Executive Vice President* THE HARTFORD ONE HARTFORD PLAZA HARTFORD CT 06155
Krump Paul J officer: Executive Vice President* C/O CHUBB & SON 15 MOUNTAIN VIEW RD P O BOX161 WARREN NJ 07061-1615
Kellner Lawrence W director 1600 SMITH ST. HQSEO HOUSTON TX 77002
Zimmerman James M director C/O FOSSIL GROUP, INC. 901 S. CENTRAL EXPRESSWAY RICHARDSON TX 75080
Cash James I director C/O WINSTAR COMMUNICATIONS INC 685 THIRD AVENUE NEW YORK NY 10017
Burke Sheila P director WELLPOINT, INC 120 MONUMENT CIRCLE INDIANAPOLIS IN 46240
Sidwell David H director MORGAN STANLEY 1585 BROADWAY NEW YORK NY 10036
Edwardson John A director P O BOX 66100-WHQLD CHICAGO IL 60666

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