What is Wells Fargo Financial Strength?
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.
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. 2024 was 2.32.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. 2024 was $-10,961 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 $179,136 Mil.
Wells Fargo'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.
Wells Fargo'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 | |
| = | (13001 | + | 179136) | / | 82756 | |
| = | 2.32 |
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
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Wells Fargo Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Banks » » Definitions » Financial Strength
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Traded in Other Exchanges
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Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Website
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company has 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
| Richard K Davis | director | 800 NICOLLET MALL, MINNEAPOLIS MN 55402 |
| Thomas R Nides | officer: Vice Chairman | C/O WELLS FARGO & COMPANY, 420 MONTGOMERY STREET, SAN FRANCISCO CA 94104 |
| Tracy M Kerrins | officer: Sr. Executive Vice President | 300 S BREVARD STREET, CHARLOTTE NC 28202 |
| Kyle G Hranicky | officer: Sr. Executive Vice President | 1000 LOUISIANA STREET, HOUSTON TX 77002 |
| Felicia F Norwood | director | 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204 |
| Kleber Santos | officer: Sr. Executive Vice President | 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102 |
| Ellen R Patterson | officer: Sr. EVP and General Counsel | 30 HUDSON YARDS, NEW YORK NY 10001 |
| Kristy Fercho | officer: Sr. Executive Vice President | 5151 CORPORATE DRIVE, TROY MI 48098 |
| Cecelia Morken | director | 26025 MUREAU ROAD, CALABASAS CA 91302 |
| Beurden Saul Van | officer: Sr. Executive Vice President | 150 EAST 42ND STREET, NEW YORK NY 10017 |
| Bei Ling | officer: Sr. Executive Vice President | 30 HUDSON YARDS, NEW YORK NY 10001 |
| Ather Iii Williams | officer: Sr. Executive Vice President | 30 HUDSON YARDS, NEW YORK NY 10001 |
| Michael P. Santomassimo | officer: Sr. EVP & CFO | 225 LIBERTY STREET, NEW YORK NY 10286 |
| Mark A Chancy | director | 303 PEACHTREE ST., 30TH FLOOR, ATLANTA GA 30308 |
| Lester Owens | officer: Sr. Executive Vice President | 240 GREENWICH STREET, NEW YORK NY 10286 |
