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OneMain Holdings (MEX:OMF) Financial Strength : 2 (As of Mar. 2025)


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What is OneMain Holdings Financial Strength?

OneMain Holdings has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

OneMain Holdings 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 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.

GuruFocus does not calculate OneMain Holdings's interest coverage with the available data. OneMain Holdings's debt to revenue ratio for the quarter that ended in Mar. 2025 was 4.52. Altman Z-Score does not apply to banks and insurance companies.


OneMain Holdings 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:

OneMain Holdings's Interest Expense for the months ended in Mar. 2025 was MXN-6,383 Mil. Its Operating Income for the months ended in Mar. 2025 was MXN0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was MXN439,708 Mil.

OneMain Holdings's Interest Coverage for the quarter that ended in Mar. 2025 is

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

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

OneMain Holdings's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(20.458 + 439708.093) / 97299.2
=4.52

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.


OneMain Holdings  (MEX:OMF) 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.

OneMain Holdings has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


OneMain Holdings Financial Strength Related Terms

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OneMain Holdings Business Description

Traded in Other Exchanges
Address
601 N.W. Second Street, Evansville, IN, USA, 47708
OneMain Holdings Inc is a consumer finance company providing loan products to customers through its branch network and the internet. The company provides personal loan products; offers credit cards; offers optional credit insurance and others; offers a customer-focused financial wellness program, and acquisitions and dispositions of assets and businesses. It provides origination, underwriting, and servicing of personal loans to non-prime customers. The company's reportable segment is Consumer and Insurance. The main source of revenue is net interest income.