Globe Life (Globe Life) Interest Coverage : 14.11 (As of Dec. 2023)

View and export this data going back to 1980. Start your Free Trial

What is Globe Life Interest Coverage?

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 EBIT by its Interest Expense. Globe Life's EBIT for the three months ended in Dec. 2023 was $362 Mil. Globe Life's Interest Expense for the three months ended in Dec. 2023 was $-26 Mil. Globe Life's interest coverage for the quarter that ended in Dec. 2023 was 14.11. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Globe Life's Interest Coverage or its related term are showing as below:

GL' s Interest Coverage Range Over the Past 10 Years
Min: 10.27 Med: 11.33 Max: 16.27
Current: 12.64

GL's Interest Coverage is ranked worse than
52.47% of 324 companies
in the Insurance industry
Industry Median: 13.355 vs GL: 12.64

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Globe Life Interest Coverage Historical Data

The historical data trend for Globe Life's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Globe Life Interest Coverage Chart

Globe Life Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

12.05

11.34

16.27

13.19

12.67

Globe Life Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															12.03	11.25	13.28	14.11	12.00

Competitive Comparison of Globe Life's Interest Coverage

For the Insurance - Life subindustry, Globe Life's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Globe Life's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Globe Life's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Globe Life's Interest Coverage falls into.

Globe Life Interest Coverage Calculation

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:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Globe Life's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Globe Life's Interest Expense was $-102 Mil. Its EBIT was $1,297 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,630 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1296.582	/	-102.316
	=	12.67

Globe Life's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Globe Life's Interest Expense was $-26 Mil. Its EBIT was $362 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,630 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	362.387	/	-25.676
	=	14.11

The higher the ratio, the stronger the company's Financial Strength is.

Globe Life (NYSE:GL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Globe Life Interest Coverage Related Terms

Thank you for viewing the detailed overview of Globe Life's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Globe Life (Globe Life) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Globe Life Inc (NYSE:GL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

G1LL34:Brazil

Address

3700 South Stonebridge Drive, McKinney, TX, USA, 75070

Website

https://www.globelifeinsurance.com

Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.

Executives

Jennifer Allison Haworth	officer: EVP & Chief Marketing Officer	3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Melissa Jane Buchan	director	1920 MAIN STREET, SUITE 500, IRVINE CA 92614
Dolores L Skarjune	officer: EVP & Chief Admin. Officer	3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Rebecca E Zorn	officer: EVP & Chief Talent Officer	3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Michael Clay Majors	officer: EVP - Investor Rel. & Admin.	UNITED AMERICAN INSURANCE COMPANY, 3700 SOUTH STONEBRIDGE DRIVE, MCKINNEY TX 75070
Frank M Svoboda	officer: EVP & CFO	3340 PECAN HOLLOW CT, GRAPEVINE TX 76051
James Matthew Darden	officer: EVP, Chief Strategy Officer	2904 BELCLAIRE DRIVE, FRISCO TX 75034
Michael Shane Henrie	officer: SVP & Chief Accounting Officer	UNITED AMERICAN INSURANCE COMPANY, 3700 SOUTH STONEBRIDGE DRIVE, MCKINNEY TX 75070
Robert Brian Mitchell	officer: EVP, General Counsel and CRO	3120 HARVEY PKWY, OKLAHOMA CITY OK 73118
Cheryl Alston	director	3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
David A Rodriguez	director	10400 FERNWOOD ROAD, BETHESDA MD 20817
Alice S Cho	director	P.O. BOX 30918, BILLINGS MT 59116-0918
Steven John Dichiaro	other: Exec. Officer of Principal Sub	2152 SEVEN LAKES DR, LOVELAND CO 80538
Gary L Coleman	director, officer: Co-Chairman & CEO
Larry M Hutchison	director, officer: Co-Chaiman & CEO	P O BOX 8080, MCKINNEY TX 75010