ALLY (Ally Financial) Financial Strength : 4 (As of Sep. 2024)

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What is Ally Financial Financial Strength?

Ally Financial has the Financial Strength Rank of 4.

Warning Sign:

Ally Financial Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It 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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Ally Financial's interest coverage with the available data. Ally Financial's debt to revenue ratio for the quarter that ended in Sep. 2024 was 2.00. Altman Z-Score does not apply to banks and insurance companies.

Ally Financial Financial Strength Calculation

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:

Ally Financial's Interest Expense for the months ended in Sep. 2024 was $-1,885 Mil. Its Operating Income for the months ended in Sep. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $13,172 Mil.

Ally Financial's Interest Coverage for the quarter that ended in Sep. 2024 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Ally Financial's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2024 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(5140	+	13172)	/	9176
	=	2.00

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.

Ally Financial (NYSE:ALLY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Ally Financial has the Financial Strength Rank of 4.

Ally Financial Financial Strength Related Terms

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Ally Financial Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Ally Financial Inc (NYSE:ALLY) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

ALLY1:Mexico 0HD0:UK GMZ:Germany

Address

500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226

Website

https://www.ally.com

Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.

Executives

David J Debrunner	officer: VP, CAO, Controller
Thomas P Gibbons	director	THE BANK OF NEW YORK MELLON CORPORATION, 225 LIBERTY STREET, NEW YORK NY 10286
Russell E. Hutchinson	officer: Chief Financial Officer	C/O ALLY FINANCIAL INC., 500 WOODWARD AVE., 10TH FLOOR, DETROIT MI 48226
Marjorie Magner	director	GANNETT CO., INC., 7950 JONES BRANCH DRIVE, MCLEAN VA 22107
Bradley J. Brown	officer: Interim CFO	C/O ALLY FINANCIAL INC., 500 WOODWARD AVE., 10TH FLOOR, DETROIT MI 48226
Melissa Goldman	director	C/O ALLY FINANCIAL INC, 500 WOODWARD AVE, 10TH FLOOR, DETROIT MI 48226
David Reilly	director	C/O ALLY FINANCIAL INC., 500 WOODWARD AVE, 10TH FLOOR, DETROIT MI 48226
Jason E. Schugel	officer: Chief Risk Officer	ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Douglas R. Timmerman	officer: President, Auto Finance	ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Diane E. Morais	officer: CEO & President, Ally Bank	ALLY FINANCIAL INC., 440 SOUTH CHURCH STREET, CHARLOTTE NC 28202
Scott A Stengel	officer: General Counsel	1010 GRAND BLVD, KANSAS CITY MO 64106
Jeffrey Jonathan Brown	officer: Sr Executive Vice President	C/O ALLY FINANCIAL INC., 200 RENAISSANCE CENTER, DETROIT MI 48265
Jennifer A. Laclair	officer: Chief Financial Officer	ALLY DETROIT CENTER, 500 WOODWARD AVENUE, DETROIT MI 48226
Mayree C Clark	director	C/O ALLY FINANCIAL INC., 200 RENAISSANCE CENTER, DETROIT MI 48265
Hobbs Franklin W Iv	director	1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202