: 4 (As of Sep. 2023)
Charles Schwab 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.
GuruFocus does not calculate Charles Schwab's interest coverage with the available data.Charles Schwab's debt to revenue ratio for the quarter that ended in Sep. 2023 was 3.48.Altman Z-Score does not apply to banks and insurance companies.
Charles Schwab 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:
Charles Schwab's Interest Expense for the months ended in Sep. 2023 was $-1,790 Mil. Its Operating Income for the months ended in Sep. 2023 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $24,803 Mil.
Charles Schwab's Interest Coverage for the quarter that ended in Sep. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Charles Schwab's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is
| Debt to Revenue Ratio | = | Total Debt (Q: Sep. 2023 ) | / | Revenue | ||
| = | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
| = | (39350 | + | 24803) | / | 18424 | |
| = | 3.48 |
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.
Charles Schwab(NYSE:SCHW) 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.
Charles Schwab has the Financial Strength Rank of 4.
Charles Schwab Financial Strength Related Terms
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Charles Schwab (NYSE:SCHW) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Capital Markets » Charles Schwab Corp (NYSE:SCHW) » Definitions » Financial Strength
Comparable Companies
Traded in Other Exchanges
Address
3000 Schwab Way, Westlake, TX, USA, 76262
Website
Charles Schwab operates in brokerage, wealth management, banking, and asset-management businesses. The company runs a large network of brick-and-mortar brokerage branch offices, a well-established online investing website, and has mobile trading capabilities. It also operates a bank and a proprietary asset management business and offers services to independent investment advisors. The company is among the largest firms in the investment business, with over $7 trillion of client assets at the end of December 2022. Nearly all of its revenue is from the United States.
Executives
| Carolyn Schwab-pomerantz | director | 3000 SCHWAB WAY, WESTLAKE TX 76262 |
| Morgan Peter J. Iii | officer: General Counsel | 211 MAIN STREET, SAN FRANCISCO CA 94105 |
| Peter B. Crawford | officer: CFO | 211 MAIN STREET, SAN FRANCISCO CA 94105 |
| Charles R. Schwab | director, officer: Co-Chairman | PO BOX 2226, PALM BEACH FL 33480 |
| Paula A Sneed | director | THREE LAKES DRIVE, NORTHFIELD IL 60093 |
| Charles A. Ruffel | director | 3000 SCHWAB WAY, WESTLAKE TX 76262 |
| Arun Sarin | director | C/O SAFEWAY INC., 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588 |
| Joan Dea | director | 229 BRANNAN ST. #18G, SAN FRANCISCO CA 94107 |
| Brian M Levitt | director | C/O DOMTAR CORPORATION, 234 KINGSLEY PARK DRIVE, FORT MILL SC 29715 |
| Marianne Catherine Brown | director | 4094 TIMUQUANA ROAD, JACKSONVILLE FL 33210-8571 |
| Richard A Wurster | officer: President | 3000 SCHWAB WAY, WESTLAKE TX 76262 |
| Bernard J. Clark | officer: MD, Head of Adivsor Services | C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105 |
| Gerri Martin-flickinger | director | C/O TABLEAU SOFTWARE, INC., 1621 N 34TH ST, SEATTLE WA 98103 |
| Mark A Goldfarb | director | C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105 |
| Stephen A Ellis | director | C/O THE CHARLES SCHWAB CORPORATION, 211 MAIN STREET, SAN FRANCISCO CA 94105 |
