GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Prudential Financial Inc (STU:PLL) » Definitions » Financial Strength

Prudential Financial (STU:PLL) Financial Strength : 5 (As of Sep. 2024)


View and export this data going back to 2001. Start your Free Trial

What is Prudential Financial Financial Strength?

Prudential Financial has the Financial Strength Rank of 5.

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.

Prudential Financial's Interest Coverage for the quarter that ended in Sep. 2024 was 2.14. Prudential Financial's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.27. Altman Z-Score does not apply to banks and insurance companies.


Prudential 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:

Prudential Financial's Interest Expense for the months ended in Sep. 2024 was €-437 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 €18,270 Mil.

Prudential 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.

Prudential 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
=(1085.705 + 18269.577) / 70396.932
=0.27

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.


Prudential Financial  (STU:PLL) 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.

Prudential Financial has the Financial Strength Rank of 5.


Prudential Financial Financial Strength Related Terms

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


Prudential Financial Business Description

Traded in Other Exchanges
Address
751 Broad Street, Newark, NJ, USA, 07102
Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 10% of its earnings and has around $1.3 trillion in assets under management. The US businesses are responsible for about 50% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.