What is Synchrony Financial Financial Strength?
Synchrony Financial 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 Synchrony Financial's interest coverage with the available data.Synchrony Financial's debt to revenue ratio for the quarter that ended in Jun. 2024 was 1.05.Altman Z-Score does not apply to banks and insurance companies.
Synchrony Financial 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:
Synchrony Financial's Interest Expense for the months ended in Jun. 2024 was $-1,177 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 $15,637 Mil.
Synchrony Financial'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.
Synchrony Financial'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 | |
= | (0 | + | 15637) | / | 14848 | |
= | 1.05 |
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.
Synchrony Financial(NYSE:SYF) 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.
Synchrony Financial has the Financial Strength Rank of 4.
Synchrony Financial Financial Strength Related Terms
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Synchrony Financial Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Credit Services » Synchrony Financial (NYSE:SYF) » Definitions » Financial Strength
Comparable Companies
ALLY SOFI OBDC CACC FCFS OMF WU NNI DFS SLM V MA AXP PYPL BOM:500034 COF TSE:8591 XPAR:EDEN NSE:CHOLAFIN BOM:543257
Traded in Other Exchanges
SYFpA.PFD:USA SYF:Mexico 0LC3:UK SFE:Germany S1YF34:Brazil
Address
777 Long Ridge Road, Stamford, CT, USA, 06902
Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).
Executives
Carol Juel | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
Bart Schaller | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
David P Melito | officer: See Remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Brian D Doubles | officer: See Remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Jonathan S Mothner | officer: See Remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Maran Nalluswami | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
Wenzel Brian J. Sr. | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
Alberto Casellas | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
Margaret M Keane | director, officer: President and CEO | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Kamila K Chytil | director | 2828 N. HARWOOD STREET, 15TH FLOOR, DALLAS TX 75201 |
Curtis Howse | officer: See remarks | 777 LONG RIDGE ROAD, C/O CORPORATE SECRETARY, STAMFORD CT 06902 |
Paul Whynott | officer: See remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Thomas M Quindlen | officer: See Remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
Henry F Greig | officer: See Remarks | 777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902 |
P.w. Parker | director | U.S. BANCORP, 800 NICOLLET MALL, MINNEAPOLIS MN 55402 |