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Wells Fargo Financial Strength

: 3 (As of Jun. 2021)
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Wells Fargo 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:

Wells Fargo & Co 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 Wells Fargo's interest coverage with the available data. Wells Fargo's debt to revenue ratio for the quarter that ended in Jun. 2021 was 2.36. Altman Z-Score does not apply to banks and insurance companies.


Wells Fargo 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:

Wells Fargo's Interest Expense for the months ended in Jun. 2021 was $-905 Mil. Its Operating Income for the months ended in Jun. 2021 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $179,656 Mil.

Wells Fargo's Interest Coverage for the quarter that ended in Jun. 2021 is

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

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

Wells Fargo's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11927 + 179656) / 81080
=2.36

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.


Wells Fargo  (NYSE:WFC) 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.

Wells Fargo 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.


Wells Fargo Financial Strength Related Terms

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


Wells Fargo Business Description

Wells Fargo logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
Executives
Scharf Charles W director, officer: CEO & President C/O VISA INC. 900 METRO CENTER BLVD. FOSTER CITY CA 94404
Williams Ather Iii officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Santomassimo Michael P. officer: Sr. EVP & CFO 225 LIBERTY STREET NEW YORK NY 10286
Noski Charles H director ONE PICKWICK PLAZA GREENWICH CT 06830
Hewett Wayne M. director 5 WESTBROOK CORPORATE CENTER WESTCHESTER IL 60154
Chancy Mark A director 303 PEACHTREE ST. 30TH FLOOR ATLANTA GA 30308
Black Steven D director C/O JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Clark Celeste A. director C/O ADVANCEPIERRE FOODS HOLDINGS, INC. 9987 CARVER ROAD BLUE ASH OH 45242
Sargent Ronald director 1014 VINE STREET CINCINNATI OH 45202
Owens Lester officer: Sr. Executive Vice President 240 GREENWICH STREET NEW YORK NY 10286
Galloreese David officer: Sr. Executive Vice President 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Norton Amanda G officer: Sr. EVP and Chief Risk Officer 420 MONTGOMERY STREET SAN FRANCISCO CA 94104
Flowers Derek A. officer: Sr. Executive Vice President 301 SOUTH COLLEGE STREET CHARLOTTE NC 28202
Craver Theodore F Jr director DUKE ENERGY CORPORATION 550 SOUTH TRYON STREET - DEC45A CHARLOTTE NC 28202
Sommers Barry officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
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