Great-West Lifeco (TSX:GWO) Financial Strength : 5 (As of Sep. 2024)

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What is Great-West Lifeco Financial Strength?

Great-West Lifeco 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.

Great-West Lifeco's Interest Coverage for the quarter that ended in Sep. 2024 was 11.42. Great-West Lifeco's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.21. Altman Z-Score does not apply to banks and insurance companies.

Great-West Lifeco 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:

Great-West Lifeco's Interest Expense for the months ended in Sep. 2024 was C$-98 Mil. Its Operating Income for the months ended in Sep. 2024 was C$0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was C$9,112 Mil.

Great-West Lifeco'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.

Great-West Lifeco'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
	=	(0	+	9112)	/	42576
	=	0.21

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.

Great-West Lifeco (TSX:GWO) 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.

Great-West Lifeco has the Financial Strength Rank of 5.

Great-West Lifeco Financial Strength Related Terms

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Great-West Lifeco Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Great-West Lifeco Inc (TSX:GWO) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

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Address

100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3

Website

https://www.greatwestlifeco.com

Great-West Lifeco provides life insurance, health insurance, retirement products, asset management, recordkeeping services, and reinsurance products in Canada, the United States, and Europe. The Canada business contributes approximately 31% of adjusted earnings and has leading market positions in group insurance, group retirement, and individual insurance. The company operates the second-largest recordkeeping business under the Empower brand in the United States, with an earnings contribution from the country approximating 26%. Great-West Lifeco also offers various products across Europe markets with a strong presence in the UK, Ireland, and Germany. The Europe segment contributed around 21% of adjusted earnings and the reinsurance business accounts for around 22% of adjusted earnings.

Executives

Richard Henry Linton	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Bradley John Fedorchuk	Senior Officer
Sharon Cecilia Geraghty	Senior Officer
Linda Kerrigan	Senior Officer
Christine Marie Moritz	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Dervla Mary Tomlin	Senior Officer
Arshil Jamal	Senior Officer
Paul Mahon	Director, Senior Officer
Charles Donald Harvey Henaire	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Jeffrey Frederick Macoun	Senior Officer
Garry Macnicholas	Senior Officer
Edmund Francis Murphy	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
L.p. Great-west Lifeco U.s. Holdings	Subsidiary
David Martin Harney	Senior Officer
James Mahase Singh	Director