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Bank of New York Mellon Financial Strength

: 4 (As of Mar. 2022)
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Bank of New York Mellon 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 New York Mellon's interest coverage with the available data. Bank of New York Mellon's debt to revenue ratio for the quarter that ended in Mar. 2022 was 1.66. Altman Z-Score does not apply to banks and insurance companies.


Bank of New York Mellon 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 New York Mellon's Interest Expense for the months ended in Mar. 2022 was $-80 Mil. Its Operating Income for the months ended in Mar. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $25,558 Mil.

Bank of New York Mellon's Interest Coverage for the quarter that ended in Mar. 2022 is

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

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Bank of New York Mellon Corp has enough cash to cover all of its debt. Its financial situation is stable.

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

Bank of New York Mellon's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 25558) / 15388
=1.66

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 New York Mellon  (NYSE:BK) 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 New York Mellon has the Financial Strength Rank of 4.


Bank of New York Mellon Financial Strength Related Terms

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Bank of New York Mellon Business Description

Bank of New York Mellon logo
Address
240 Greenwich Street, New York, NY, USA, 10286
BNY Mellon is a global investment company involved in managing and servicing financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors and delivers investment management and investment services in 35 countries and more than 100 markets. BNY Mellon is the largest global custody bank in the world, with about $41.1 trillion in under custody and administration (as of Dec. 31, 2020), and can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute, or restructure investments. BNY Mellon's asset-management division manages about $2.2 trillion in assets.
Executives
O'connor Sandie director C/O TEREX CORPORATION 200 NYALA FARM ROAD WESTPORT CT 06880
Landau Jeffrey D officer: Sr. Exec Vice President 200 PARK AVENUE NEW YORK NY 10166
Gilliland Marguerite Amy director 2941 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Gowrappan Kumara Guru director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Smits Hanneke officer: Sr. Exec. Vice President 160 QUEEN VICTORIA STREET THE BANK OF NEW YORK MELLON CENTRE LONDON X0 EC4V 4LA
Vince Robin A. officer: Vice Chair 240 GREENWICH STREET ` NEW YORK NY 10286
Keating Catherine officer: Sr. Exec. Vice President 75 STATE ST BOSTON MA 02109
Izzo Ralph director PSEG 80 PARK PLAZA T6B NEWARK NJ 07102-4194
Portney Emily Hope officer: Chief Financial Officer C/O MARKETAXESS HOLDINGS INC. 299 PARK AVENUE NEW YORK NY 10171
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Anderson Jolen officer: Senior Exec VP 240 GREENWICH STREET NEW YORK NY 10286
Santhanakrishnan Senthilkumar officer: Senior Exec VP 240 GREENWICH STREET NEW YORK NY 10286
Daley William M officer: Vice Chairman JP MORGAN CHASE ONE BANK ONE PLAZA, SUITE 0896 CHICAGO IL 60670
Terrell Frederick director 17 STATE STREET NEW YORK NY 10004
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