What is Direct Line Insurance Group Financial Strength?
Direct Line Insurance Group has the Financial Strength Rank of 7.
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.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
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.
Direct Line Insurance Group's Interest Coverage for the quarter that ended in Dec. 2024 was 21.10.
Direct Line Insurance Group's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.08.
Altman Z-Score does not apply to banks and insurance companies.
Direct Line Insurance Group 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.
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:
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.
Direct Line Insurance Group (OTCPK:DIISY) 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.
Direct Line Insurance Group has the Financial Strength Rank of 7.
Direct Line Insurance Group Financial Strength Related Terms
Thank you for viewing the detailed overview of Direct Line Insurance Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Direct Line is one of the more focused insurers that we cover. The business sells four lines of insurance in two divisions: personal lines motor, personal lines home, rescue and other personal lines, and commercial. Rescue and other personal lines include rescue and travel with pet insurance being discontinued. Commercial insurance is sold to small businesses and Direct Line agreed to the sale of its commercial broking business. Direct Line only sells insurance in the United Kingdom. Its personal motor insurance division typically accounts for around 60% of group gross written premium and the personal home insurance unit typically sells around 20%. Rescue and other personal lines account for around 10% and commercial insurance accounts for around 10%.
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