What is UBS Group AG Financial Strength?
UBS Group AG 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:
UBS Group AG 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 UBS Group AG's interest coverage with the available data.UBS Group AG's debt to revenue ratio for the quarter that ended in Jun. 2024 was 7.48.Altman Z-Score does not apply to banks and insurance companies.
UBS Group AG 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:
UBS Group AG's Interest Expense for the months ended in Jun. 2024 was $-9,319 Mil. Its Operating Income for the months ended in Jun. 2024 was $0 Mil. And its for the quarter that ended in Jun. 2024 was $319,682 Mil.
UBS Group AG's Interest Coverage for the quarter that ended in Jun. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
UBS Group AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is
| Debt to Revenue Ratio | = | Total Debt (Q: Jun. 2024 ) | / | Revenue | ||
| = | ( | + | ) | / | Revenue | |
| = | (34944 | + | 319682) | / | 47412 | |
| = | 7.48 |
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.
UBS Group AG(NYSE:UBS) 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.
UBS Group AG 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.
UBS Group AG Financial Strength Related Terms
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UBS Group AG Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Banks » UBS Group AG (NYSE:UBS) » Definitions » Financial Strength
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Traded in Other Exchanges
UBS N:Mexico UBSGz:UK 0R3T:UK UBSGE:Switzerland UBSG:Switzerland UBSG34:Brazil
Address
Bahnhofstrasse 45, Zurich, CHE, CH-8001
Website
The core of UBS is its global wealth management business focusing on high and ultra-high-net-worth individuals. UBS is also a conventional retail and commercial bank in its Swiss home market. Its investment bank and asset management businesses support its wealth management operations, but also leverage its strength in wealth management to serve third-party clients.
