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The Travelers (NYSE:TRV) Financial Strength

: 5 (As of Dec. 2022)
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The Travelers has the Financial Strength Rank of 5.

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.

The Travelers's Interest Coverage for the quarter that ended in Dec. 2022 was 12.22. The Travelers's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.19. Altman Z-Score does not apply to banks and insurance companies.


The Travelers 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:

The Travelers's Interest Expense for the months ended in Dec. 2022 was $-88 Mil. Its Operating Income for the months ended in Dec. 2022 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $7,192 Mil.

The Travelers's Interest Coverage for the quarter that ended in Dec. 2022 is

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

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

The Travelers's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(100 + 7192) / 38544
=0.19

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.


The Travelers  (NYSE:TRV) 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.

The Travelers has the Financial Strength Rank of 5.


The Travelers Financial Strength Related Terms

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


The Travelers (NYSE:TRV) Business Description

The Travelers logo
Address
485 Lexington Avenue, New York, NY, USA, 10017
Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance. Policies are distributed via a network of more than 11,000 brokers and independent agents.
Executives
Rafael Santana director C/O TRANSPORTATION SYSTEMS HOLDINGS INC., 901 MAIN AVENUE, NORWALK CT 06851
Van Kralingen Bridget A director IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Jeffrey P. Klenk officer: EVP & Pres., Bond & Spec. Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
David Donnay Rowland officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Thomas B Leonardi director 175 WATER STREET, NEW YORK NY 10038
Daniel Tei-hwa Yin officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Diane Kurtzman officer: EVP & Chief HR Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Elizabeth Robinson director 79 LAIGHT STREET, APT. 4A, NEW YORK NY 10019
Mojgan M Lefebvre officer: Chief Information Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Daniel S. Frey officer: Chief Financial Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Diane D. Bengston officer: EVP & Chief HR Officer 385 WASHINGTON STREET, ST. PAUL MN 55102
Thomas M Kunkel officer: EVP & Pres., Bond & Spec. Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
Michael Frederick Klein officer: EVP & President, Personal Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
Avrohom J. Kess officer: Vice Chmn & Chief Legal Off 385 WASHINGTON STREET, ST. PAUL MN 55102
Gregory C Toczydlowski officer: EVP & President, Business Ins. 385 WASHINGTON STREET, ST. PAUL MN 55102
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