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Ally Financial Financial Strength

: 3 (As of Jun. 2022)
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Ally Financial has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Ally Financial 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 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 Ally Financial's interest coverage with the available data. Ally Financial's debt to revenue ratio for the quarter that ended in Jun. 2022 was 2.74. Altman Z-Score does not apply to banks and insurance companies.


Ally 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:

Ally Financial's Interest Expense for the months ended in Jun. 2022 was $-467 Mil. Its Operating Income for the months ended in Jun. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $13,546 Mil.

Ally Financial's Interest Coverage for the quarter that ended in Jun. 2022 is

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

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

Ally Financial's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11349 + 13546) / 9080
=2.74

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.


Ally Financial  (NYSE:ALLY) 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.

Ally Financial has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Ally Financial Financial Strength Related Terms

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


Ally Financial Business Description

Ally Financial logo
Address
500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
Ally Financial Inc is a diversified financial services firm that services automotive dealers and their retail customers. The company operates as a financial holding company and a bank holding company. Its banking subsidiary, Ally Bank, caters to the direct banking market through Internet, mobile, and mail. The company reports four business segments including Automotive Finance operations, Insurance operations, Mortgage Finance operations and Corporate Finance operations.
Executives
Goldman Melissa director C/O ALLY FINANCIAL INC 500 WOODWARD AVE, 10TH FLOOR DETROIT MI 48226
Reilly David director C/O ALLY FINANCIAL INC. 500 WOODWARD AVE, 10TH FLOOR DETROIT MI 48226
Sharples Brian director 1250 CAPITAL OF TX HWY, BLDG 2, PLAZA 1 AUSTIN TX 78746
Blake Katryn director C/O VISTAPRINT 275 WYMAN STREET WALTHAM MA 02451
Timmerman Douglas R. officer: President, Auto Finance ALLY DETROIT CENTER 500 WOODWARD AVENUE DETROIT MI 48226
Schugel Jason E. officer: Chief Risk Officer ALLY DETROIT CENTER 500 WOODWARD AVENUE DETROIT MI 48226
Laclair Jennifer A. officer: Chief Financial Officer ALLY DETROIT CENTER 500 WOODWARD AVENUE DETROIT MI 48226
Cary William H director
Stengel Scott A officer: General Counsel 1010 GRAND BLVD KANSAS CITY MO 64106
Shevsky David P officer: Chief Risk Officer 200 RENAISSANCE CENTER MC 482-B09-C24 DETROIT MI 48265-2000
Russi Timothy M. officer: President, Auto Finance 200 RENAISSANCE CENTER MC 482-B09-C24 DETROIT MI 48265-2000
Breakiron-evans Maureen director C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP. 300 FRANK W. BURR BLVD., STE. 36, 6 FL. TEANECK NJ 07666
Steib Michael F director C/O XO GROUP INC. 195 BROADWAY, 25TH FLOOR NEW YORK NY 10007
Morais Diane E. officer: CEO & President, Ally Bank ALLY FINANCIAL INC. 440 SOUTH CHURCH STREET CHARLOTTE NC 28202
Bacon Kenneth J director 5404 WISCONSIN AVENUE SUITE 410 CHEVY CHASE MD 20815
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