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Globe Life Interest Coverage

: 10.94 (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. Globe Life's EBIT for the three months ended in Jun. 2022 was $239 Mil. Globe Life's Interest Expense for the three months ended in Jun. 2022 was $-22 Mil. Globe Life's interest coverage for the quarter that ended in Jun. 2022 was 10.94. The higher the ratio, the stronger the company's financial strength is.

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

GL' s Interest Coverage Range Over the Past 10 Years
Min: 10.27   Med: 10.92   Max: 12.05
Current: 11.53


GL's Interest Coverage is ranked worse than
56.83% of 322 companies
in the Insurance industry
Industry Median: 14.31 vs GL: 11.53

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


Globe Life Interest Coverage Historical Data

The historical data trend for Globe Life'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.

Globe Life 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 10.83 10.59 12.05 11.34 11.93

Globe Life 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 12.27 12.05 12.07 11.11 10.94

Competitive Comparison

For the Insurance - Life subindustry, Globe Life'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.

   

Globe Life Interest Coverage Distribution

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

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



Globe Life 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.

Globe Life'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, Globe Life's Interest Expense was $-83 Mil. Its EBIT was $996 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,546 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*995.876/-83.486
=11.93

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

Here, for the three months ended in Jun. 2022, Globe Life's Interest Expense was $-22 Mil. Its EBIT was $239 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,627 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*238.824/-21.828
=10.94

* 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.


Globe Life  (NYSE:GL) 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 .


Globe Life Interest Coverage Related Terms

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


Globe Life Business Description

Globe Life logo
Traded in Other Exchanges
Address
3700 South Stonebridge Drive, McKinney, TX, USA, 75070
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
Executives
Tyler Christopher Kyle officer: EVP & Chief Info. Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Kalmbach Thomas Peter officer: EVP & Chief Actuary 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Hensley Robert Edward officer: EVP & Chief Investment Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Zorn Rebecca E officer: EVP & Chief Talent Officer 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Moore Christopher Todd officer: Corp.SVP, Assoc.Counsel & Sec 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Rogers John Henry Jr other: Officer of Principal Sub 1433 ROLLING HILLS CELINA TX 75009
Mcpartland James Eric officer: EVP &Chief Information Officer 2345 TIMBERLAKE CIRCLE ALLEN TX 75013
Matson Kenneth J other: Officer of Principal Sub. FAMILY HERITAGE LIFE POST OFFICE BOX 470608 CLEVELAND OH 44147-0608
Carlson David Kendall other: Officer of Principal Sub. UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Henrie Michael Shane officer: SVP & Chief Accounting Officer UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Majors Michael Clay officer: EVP - Investor Rel. & Admin. UNITED AMERICAN INSURANCE COMPANY 3700 SOUTH STONEBRIDGE DRIVE MCKINNEY TX 75070
Svoboda Frank M officer: EVP & CFO 3340 PECAN HOLLOW CT GRAPEVINE TX 76051
Hutchison Larry M director, officer: Co-Chaiman & CEO P O BOX 8080 MCKINNEY TX 75010
Addison Linda director 3700 S. STONEBRIDGE DRIVE MCKINNEY TX 75070
Alexander Marilyn A director 565 DUNNEGAN DRIVE LAGUNA BEACH CA 92651

Globe Life Headlines

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