Arch Capital Group (Arch Capital Group) Interest Coverage

: 35.94 (As of Dec. 2023)

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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. Arch Capital Group's EBIT for the three months ended in Dec. 2023 was $1,222 Mil. Arch Capital Group's Interest Expense for the three months ended in Dec. 2023 was $-34 Mil. Arch Capital Group's interest coverage for the quarter that ended in Dec. 2023 was 35.94. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Arch Capital Group's Interest Coverage or its related term are showing as below:

ACGL' s Interest Coverage Range Over the Past 10 Years
Min: 7.45 Med: 13.64 Max: 26.45
Current: 26.45

ACGL's Interest Coverage is ranked better than
62.77% of 325 companies
in the Insurance industry
Industry Median: 13.19 vs ACGL: 26.45

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

Arch Capital Group Interest Coverage Historical Data

The historical data trend for Arch Capital Group'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.

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Arch Capital Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

16.28

11.88

16.13

12.35

26.45

Arch Capital Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																28.72	24.19	22.64	22.79	35.94

Competitive Comparison

For the Insurance - Diversified subindustry, Arch Capital Group'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.

Arch Capital Group Interest Coverage Distribution

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

* The bar in red indicates where Arch Capital Group's Interest Coverage falls into.

Arch Capital Group 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.

Arch Capital Group'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, Arch Capital Group's Interest Expense was $-133 Mil. Its EBIT was $3,518 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,726 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3518	/	-133
	=	26.45

Arch Capital Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Arch Capital Group's Interest Expense was $-34 Mil. Its EBIT was $1,222 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,726 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1222	/	-34
	=	35.94

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

Arch Capital Group (NAS:ACGL) 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 .

Arch Capital Group Interest Coverage Related Terms

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

Arch Capital Group (Arch Capital Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arch Capital Group Ltd (NAS:ACGL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ACGLN.PFD:USA ACGLO.PFD:USA RSK:Germany RSK:Germany

Address

100 Pitts Bay Road, Waterloo House, Ground Floor, Pembroke, BMU, HM 08

Website

https://www.archgroup.com

Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and South Africa. The business operates through three segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients worldwide across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.

Executives

Nicolas Papadopoulo	other: Officer of Subsidiary	WESSEX HOUSE, 3RD FLOOR, 45 REID STREET, HAMILTON D0 HM 12
Marc Grandisson	officer: Officer of Subsidiary	C/O ARCH REINSURANCE LTD, WESSEX HOUSE 45 REID ST, HAMILTON BERMUDA D0 999999999
David Gansberg	officer: CEO, Global Mortgage Group	230 NORTH ELM STREET, GREENSBORO NC 27401
Louis T Petrillo	officer: President, Gen Counsel & Secr.	C/O ARCH CAPITAL SERVICES INC, 20 HORSENECK LANE, GREENWICH CT 06830
Maamoun Rajeh	officer: Chairman & CEO Arch Re Group	WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Francois Morin	officer: EVP and CFO	WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Bunce John L Jr	director	C/O WESTERN WIRELESS CORP, 3650 131ST AVE. S.E . #400, BELLEVUE WA 98006
Brian S Posner	director	14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
John M Pasquesi	director	C/O OTTER CAPITAL, ONE MARITIME PLAZA SUITE 1400, SAN FRANCISCO CA 94111
Francis Ebong	director	WATERLOO HOUSE, GROUND FLOOR, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
Eileen A Mallesch	director	3776 SOUTH HIGH ST, COLUMBUS OH 43207
Christine Todd	officer: SVP & Chief Investment Officer	C/O ARCH CAPITAL GROUP LTD, WATERLOO HOUSE, 100 PITTS BAY ROAD, PEMBROKE D0 HM08
W Preston Hutchings	officer: SVP & Chief Investment Officer	WESSEX HOUSE 45 REID STREET, 4TH FLOOR, HAMILTON D0 HM12
Moira A. Kilcoyne	director	632 HUDSON STREET, HOBOKEN NJ 07030
Thomas R Watjen	director	UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402