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Bank of America Financial Strength

: 4 (As of Jun. 2022)
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Bank of America has the Financial Strength Rank of 4.

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 Bank of America's interest coverage with the available data. Bank of America's debt to revenue ratio for the quarter that ended in Jun. 2022 was 3.35. Altman Z-Score does not apply to banks and insurance companies.


Bank of America 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:

Bank of America's Interest Expense for the months ended in Jun. 2022 was $-2,531 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 $275,697 Mil.

Bank of America'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.

Bank of America'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
=(27886 + 275697) / 90752
=3.35

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.


Bank of America  (NYSE:BAC) 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.

Bank of America has the Financial Strength Rank of 4.


Bank of America Financial Strength Related Terms

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


Bank of America Business Description

Bank of America logo
Address
100 North Tryon Street, Bank of America Corporate Center, Charlotte, NC, USA, 28255
Bank of America Corp is one of the largest financial institutions in the United States, with more than $2.5 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, home mortgage lending, vehicle lending, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does U.S. Trust private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries.
Executives
Thompson Bruce R. officer: Vice Chair, Head Ent Credit 100 NORTH TRYON STREET CHARLOTTE NC 28255
Borthwick Alastair M officer: Pres, Global Com Banking 100 NORTH TRYON STREET CHARLOTTE NC 28255
Bhasin Aditya officer: Chief Tech & Info Officer 100 NORTH TRYON STREET CHARLOTTE NC 28255
Mogensen Lauren A officer: Global Compl & Op Risk Exec 100 NORTH TRYON STREET CHARLOTTE NC 28255
Koder Matthew M officer: Pres, Gl Corp & Invest Banking 100 NORTH TRYON STREET CHARLOTTE NC 28255
Scrivener Thomas M officer: Chief Operations Executive 100 NORTH TRYON STREET CHARLOTTE NC 28255
Mensah Bernard A officer: President, International 100 NORTH TRYON STREET CHARLOTTE NC 28255
Demare James P officer: President, Global Markets 100 NORTH TRYON STREET CHARLOTTE NC 28255
Boland Darrin Steve officer: Chief Administrative Officer 100 NORTH TRYON STREET CHARLOTTE NC 28255
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Ramos Denise L director 870 WINTER STREET WALTHAM MA 02451
Bronstein Sheri B. officer: Chief Human Resources Officer 100 N TRYON STREET CHARLOTTE NC 28255
Knox Kathleen A. officer: President, U.S. Trust 100 N TRYON STREET CHARLOTTE NC 28255
Sieg Andrew M. officer: Pres, Merill Lynch Wlth Mgmt 100 N TRYON STREET CHARLOTTE NC 28255
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