THG
The Hanover Insurance Group, Inc. (THG) est-elle financièrement saine ?
The Hanover Insurance Group, Inc. (THG)'s balance sheet currently shows net-debt-to-EBITDA of 0.63x, debt-to-equity of 0.24x, and a current ratio of 41.90. Financial health on the Buffett-Fit framework asks whether a bad year would force the business to issue equity, sell assets at the wrong time, or cut the dividend. The full breakdown is below. Educational only, not investment advice.
Debt position. The Hanover Insurance Group, Inc. carries net-debt-to-EBITDA of 0.63x and a debt-to-equity ratio of 0.24x. Buffett's rough rule for non-financial businesses: net-debt-to-EBITDA below 2x in most sectors, with utilities and REITs allowed more room because their cash flows are more predictable. Above 3-4x is where forced deleveraging in a downturn becomes a real risk.
Liquidity. Current ratio (current assets / current liabilities) sits at 41.90. Below 1.0 means the business doesn't have enough short-term assets to cover short-term obligations - Graham's defensive cut-off is 2.0, but most healthy modern businesses run 1.2-1.8 because working-capital efficiency has improved over the decades. The key is the direction over time, not the absolute number.
Cash-flow quality. Interest coverage runs at 20.2x, and the FCF-to-net-income ratio is 1.77x. The first tells you whether earnings comfortably cover debt service; the second tells you whether accounting earnings are showing up as cash. Both above 1.5x is the comfortable zone - below 1.0x is where Buffett would walk away regardless of how cheap the stock looks.
How invest-like measures this
La santé financière sur invest-like.com mesure si un bilan est suffisamment robuste pour qu'une mauvaise année ne force pas l'entreprise à émettre des actions, vendre des actifs au mauvais moment ou réduire le dividende. Trois ancres quantitatives : dette nette/EBITDA inférieure à la médiane sectorielle (moins de 2x dans la plupart des cas), marge de free cash-flow supérieure à 10% avec un bruit limité du fonds de roulement, et couverture des intérêts qui tient même aux taux maximaux.
Les bilans conservateurs sont le facteur isolé le plus déterminant de quelles entreprises survivent aux cycles « ceci aussi passera » de Buffett. La note du pilier pondère les trois plus le ratio FCF/résultat net (les bénéfices comptables qui n'apparaissent pas en cash sont un signal d'alarme).
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