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CME (CME Group) Financial Strength : 5 (As of Mar. 2025)


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What is CME Group Financial Strength?

CME Group has the Financial Strength Rank of 5.

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.

CME Group's Interest Coverage for the quarter that ended in Mar. 2025 was 26.57. CME Group's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.52. As of today, CME Group's Altman Z-Score is 0.66.


Competitive Comparison of CME Group's Financial Strength

For the Financial Data & Stock Exchanges subindustry, CME Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CME Group's Financial Strength Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, CME Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where CME Group's Financial Strength falls into.


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CME 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.

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:

CME Group's Interest Expense for the months ended in Mar. 2025 was $-42 Mil. Its Operating Income for the months ended in Mar. 2025 was $1,108 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $3,419 Mil.

CME Group's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*1108/-41.7
=26.57

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

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

CME Group'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
=(0 + 3419.4) / 6569.2
=0.52

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.

CME Group has a Z-score of 0.66, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.66 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


CME Group  (NAS:CME) 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.

CME Group has the Financial Strength Rank of 5.


CME Group Financial Strength Related Terms

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


CME Group Business Description

Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The Chicago Mercantile Exchange was founded in 1898 and in 2002 completed its IPO. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P Dow Jones Indices, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX, it also expanded into cash foreign exchange, fixed-income trading, and collateral optimization.
Executives
Daniel G Kaye director 1742 APPLEBY ROAD, INVERNESS IL 60067
Jonathan L Marcus officer: Sr MD General Counsel 20 SOUTH WACKER DRIVE, CHICAGO IL 60606
Phyllis M Lockett director 20 S. WACKER DR., CHICAGO IL 60606
Charles P Carey director 20 S. WACKER DRIVE, CHICAGO IL 60606
Martin J Gepsman director 20 S. WACKER DR, CHICAGO IL 60606
Derek Sammann officer: Managing Dir Financial Product 20 S. WACKER DRIVE, CHICAGO IL 60606
Dennis Suskind director ONE NORTH END AVENUE, WORLD FINANCIAL CENTER, NEW YORK NY 10282
Larry G Gerdes director ONE GLENLAKE PARKWAY, SUITE 1325, ATLANTA GA 30326
William R Shepard director 20 S. WACKER DR, CHICAGO IL 60606
Howard J Siegel director 20 S. WACKER DR, CHICAGO IL 60606
Terrence A Duffy director 20 S. WACKER DR, CHICAGO IL 60606
Suzanne Sprague officer: Sr MD Global Head of Clearing 20 SOUTH WACKER DRIVE, 18S, CHICAGO IL 60606
Hilda Harris Piell officer: MD, Organizational Development 20 S. WACKER DRIVE, CHICAGO IL 60606
Julie Winkler officer: Chief Commercial Officer 20 S. WACKER DR., CHICAGO IL 60606
Ken Vroman officer: MD & Chief Corp Dev Officer 20 S. WACKER DR., CHICAGO IL 60606