GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Intercorp Financial Services Inc (NYSE:IFS) » Definitions » Financial Strength

IFS (Intercorp Financial Services) Financial Strength : 3 (As of Dec. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Intercorp Financial Services Financial Strength?

Intercorp Financial Services 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:

Intercorp Financial Services 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 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.

GuruFocus does not calculate Intercorp Financial Services's interest coverage with the available data. Intercorp Financial Services's debt to revenue ratio for the quarter that ended in Dec. 2024 was 1.64. Altman Z-Score does not apply to banks and insurance companies.


Intercorp Financial Services 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:

Intercorp Financial Services's Interest Expense for the months ended in Dec. 2024 was $-135 Mil. Its Operating Income for the months ended in Dec. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $2,637 Mil.

Intercorp Financial Services's Interest Coverage for the quarter that ended in Dec. 2024 is

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

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

Intercorp Financial Services's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(683.292 + 2636.726) / 2019.484
=1.64

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.


Intercorp Financial Services  (NYSE:IFS) 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.

Intercorp Financial Services 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.


Intercorp Financial Services Financial Strength Related Terms

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


Intercorp Financial Services Business Description

Traded in Other Exchanges
Address
Avenue Carlos Villaran 140, 5th Floor, Urbanizacion Santa Catalina, La Victoria, Lima, PER, 13
Intercorp Financial Services Inc is a provider of banking, insurance, wealth management services and payments for retail customers and commercial clients in Peru. The company has four operating segments; the Banking segment includes Mainly loans, credit facilities, deposits, and current accounts, the Insurance segment provides life annuity products with single-premium payment and conventional life insurance products and other retail insurance products, the Wealth Management segment provides brokerage and investment management services. Its geographical segments include Peru and Panama.