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Federal Agricultural Mortgage (Federal Agricultural Mortgage) Financial Strength

: 2 (As of Dec. 2023)
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Federal Agricultural Mortgage 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:

Federal Agricultural Mortgage Corp 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 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.

GuruFocus does not calculate Federal Agricultural Mortgage's interest coverage with the available data. Federal Agricultural Mortgage's debt to revenue ratio for the quarter that ended in Dec. 2023 was 82.17. Altman Z-Score does not apply to banks and insurance companies.


Federal Agricultural Mortgage 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:

Federal Agricultural Mortgage's Interest Expense for the months ended in Dec. 2023 was $-269.20 Mil. Its Operating Income for the months ended in Dec. 2023 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $19,850.86 Mil.

Federal Agricultural Mortgage's Interest Coverage for the quarter that ended in Dec. 2023 is

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

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

Federal Agricultural Mortgage's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(8087.168 + 19850.86) / 340
=82.17

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.


Federal Agricultural Mortgage  (NYSE:AGMpC.PFD) 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.

Federal Agricultural Mortgage 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.


Federal Agricultural Mortgage Financial Strength Related Terms

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Federal Agricultural Mortgage (Federal Agricultural Mortgage) Business Description

Address
1999 K Street, North West, 4th Floor, Washington, DC, USA, 20006
Federal Agricultural Mortgage Corp provides agricultural real estate and rural housing mortgage loans in the secondary market in the U.S. Its operations consist of seven segments: Farm & Ranch, Corporate AgFinance, Rural Utilities, Renewable Energy, Funding, Investments, and Corporate. The company purchases eligible mortgage loans secured by first liens on agricultural real estate and rural housing under the Farm & Ranch line of business. Its subsidiary purchases the portions of certain agricultural, rural development, business and industry, and community facilities loans guaranteed by the USDA.