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Arch Capital Group has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Arch Capital Group's Interest Coverage for the quarter that ended in Dec. 2024 was 26.32. Arch Capital Group's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.15. Altman Z-Score does not apply to banks and insurance companies.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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:
Arch Capital Group's Interest Expense for the months ended in Dec. 2024 was $-37 Mil. Its Operating Income for the months ended in Dec. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $2,728 Mil.
Arch Capital Group's Interest Coverage for the quarter that ended in Dec. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Arch Capital Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is
Debt to Revenue Ratio | = | Total Debt (Q: Dec. 2024 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (0 | + | 2728) | / | 18040 | |
= | 0.15 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
Arch Capital Group (NAS:ACGL) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Arch Capital Group has the Financial Strength Rank of 6.
Thank you for viewing the detailed overview of Arch Capital Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Louis T Petrillo | officer: President, Gen Counsel & Secr. | C/O ARCH CAPITAL SERVICES INC, 20 HORSENECK LANE, GREENWICH CT 06830 |
Francois Morin | officer: EVP and CFO | WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08 |
David Gansberg | officer: CEO, Global Mortgage Group | 230 NORTH ELM STREET, GREENSBORO NC 27401 |
Nicolas Papadopoulo | other: Officer of Subsidiary | WESSEX HOUSE, 3RD FLOOR, 45 REID STREET, HAMILTON D0 HM 12 |
Maamoun Rajeh | officer: Chairman & CEO Arch Re Group | WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08 |
Marc Grandisson | officer: Officer of Subsidiary | C/O ARCH REINSURANCE LTD, WESSEX HOUSE 45 REID ST, HAMILTON BERMUDA D0 999999999 |
Bunce John L Jr | director | C/O WESTERN WIRELESS CORP, 3650 131ST AVE. S.E . #400, BELLEVUE WA 98006 |
Brian S Posner | director | 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142 |
John M Pasquesi | director | C/O OTTER CAPITAL, ONE MARITIME PLAZA SUITE 1400, SAN FRANCISCO CA 94111 |
Francis Ebong | director | WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08 |
Eileen A Mallesch | director | 3776 SOUTH HIGH ST, COLUMBUS OH 43207 |
Christine Todd | officer: SVP & Chief Investment Officer | C/O ARCH CAPITAL GROUP LTD, WATERLOO HOUSE, 100 PITTS BAY ROAD, PEMBROKE D0 HM08 |
W Preston Hutchings | officer: SVP & Chief Investment Officer | WESSEX HOUSE 45 REID STREET, 4TH FLOOR, HAMILTON D0 HM12 |
Moira A. Kilcoyne | director | 632 HUDSON STREET, HOBOKEN NJ 07030 |
Thomas R Watjen | director | UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402 |
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