Manulife Financial (TSX:MFC) Financial Strength : 5 (As of Sep. 2024)

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What is Manulife Financial Financial Strength?

Manulife 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.

Manulife Financial's Interest Coverage for the quarter that ended in Sep. 2024 was 6.70. Manulife Financial's debt to revenue ratio for the quarter that ended in Sep. 2024 was 0.23. Altman Z-Score does not apply to banks and insurance companies.

Manulife 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:

Manulife Financial's Interest Expense for the months ended in Sep. 2024 was C$-411 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$13,222 Mil.

Manulife 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.

Manulife 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
	=	(0	+	13222)	/	58420
	=	0.23

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.

Manulife Financial (TSX:MFC) 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.

Manulife Financial has the Financial Strength Rank of 5.

Manulife Financial Financial Strength Related Terms

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

Manulife Financial Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Manulife Financial Corp (TSX:MFC) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

MNLCF.PFD:USA MFC:USA MFC:Philippines MFC:Mexico 00945:Hong Kong 0V5H:UK MLU:Germany MFC.PR.Q.PFD:Canada MFC.PR.P.PFD:Canada MFC.PR.N.PFD:Canada MFC.PR.M.PFD:Canada MFC.PR.L.PFD:Canada MFC.PR.K.PFD:Canada MFC.PR.J.PFD:Canada MFC.PR.I.PFD:Canada MFC.PR.F.PFD:Canada MFC.PR.C.PFD:Canada MFC.PR.B.PFD:Canada

Address

200 Bloor Street East, Toronto, ON, CAN, M4W 1E5

Website

https://www.manulife.com

Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.05 trillion in assets under management and administration as of the end of 2023. The US business, which primarily operates under the John Hancock brand, contributes about 27% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 23% of earnings.

Executives

Kenneth Michael Ross	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Steve Finch	Senior Officer
Rahim Hirji	Senior Officer
Brooks Tingle	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Rocco Gori	Director, Senior Officer
Philip James Witherington	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Trevor Kreel	Senior Officer
Tin Ku	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Anthony Alex Silva	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Scott Hartz	Senior Officer
Damien Allen Green	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
James D. Gallagher	Senior Officer
Paul Lorentz	Senior Officer
Donald Richard Lindsay	Director
Marianne Harrison	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer