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Jefferies Financial Group (Jefferies Financial Group) Financial Strength

: 4 (As of Feb. 2024)
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Jefferies Financial Group has the Financial Strength Rank of 4.

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.

Jefferies Financial Group's Interest Coverage for the quarter that ended in Feb. 2024 was 1.37. Jefferies Financial Group's debt to revenue ratio for the quarter that ended in Feb. 2024 was 1.78. As of today, Jefferies Financial Group's Altman Z-Score is 1.04.


Competitive Comparison

For the Capital Markets subindustry, Jefferies Financial Group's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Jefferies Financial Group Financial Strength Distribution

For the Capital Markets industry and Financial Services sector, Jefferies Financial Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Jefferies Financial Group's Financial Strength falls into.



Jefferies Financial Group 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:

Jefferies Financial Group's Interest Expense for the months ended in Feb. 2024 was $-814 Mil. Its Operating Income for the months ended in Feb. 2024 was $1,118 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $16,880 Mil.

Jefferies Financial Group's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*1117.884/-813.739
=1.37

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

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

Jefferies Financial Group's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1254.31 + 16880.139) / 10207.768
=1.78

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.

Jefferies Financial Group has a Z-score of 1.04, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.04 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Jefferies Financial Group  (NYSE:JEF) 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.

Jefferies Financial Group has the Financial Strength Rank of 4.


Jefferies Financial Group Financial Strength Related Terms

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


Jefferies Financial Group (Jefferies Financial Group) Business Description

Traded in Other Exchanges
Address
520 Madison Avenue, New York, NY, USA, 10022
Jefferies Financial Group Inc is a diversified financial services company. Its business consists of investment banking and capital markets (Jefferies Group), commercial mortgage banking (Berkadia), asset management (Leucadia Asset Management), and online platform for foreign exchange trading (FXCM), a real estate company (Homefed), and vehicle finance (Foursight Capital and Chrome Capital). The company is also involved in other businesses, such as oil and gas exploration, through JETX and Vitesse Energy; automobile dealerships, through Gargadia; fixed wireless broadband services, through Linkem; and gold and silver mining through Golden Queen, among others.
Executives
Joseph S Steinberg director, 10 percent owner, officer: President C/O LEUCADIA NATIONAL CORP, 315 PARK AVENUE SOUTH, NEW YORK NY 10010
Mark Lawrence Cagno officer: VP and Co-Controller C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVENUE, NEW YORK NY 10022
Matthew Scott Larson officer: EVP, Co-CFO C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVENUE, NEW YORK NY 10022
Brian P Friedman director, officer: President
Rocco J Nittoli officer: Treasurer 315 PARK AVENUE SOUTH, NEW YORK NY 10010
Thomas W Jones director ALTRIA GROUP INC, 6601 WEST BROAD STREET, RICHMOND VA 23230
O Kane Michael T director 80 HICKORY HILL BLVD, TOTOWA NJ 07512
Melissa Weiler director 399 PARK AVE 38TH FL, NEW YORK DC 10022
Matrice Ellis-kirk director C/O JEFFERIES FINANCIAL GROUP INC, 520 MADISON AVENUE, NEW YORK NY 10022
Stuart Harry Reese director
Barry J Alperin director C/O HENRY SCHEIN INC, 135 DURYEA RD, MELVILLE NY 11747
Jacob M Katz director C/O HERC HOLDINGS INC., 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134
Maryanne Gilmartin director C/O JEFFERIES FINANCIAL GROUP INC., 520 MADISON AVE., NEW YORK NY 10022
John Merritt Dalton officer: Controller 520 MADISON AVE., NEW YORK NY 10022
Teresa S Gendron officer: Chief Financial Officer 520 MADISON AVE., C/O JEFFERIES FINANCIAL GROUP INC., NEW YORK NY 10022