Marsh McLennan Financials

MMC Stock  USD 205.61  2.24  1.10%   
Based on the analysis of Marsh McLennan's profitability, liquidity, and operating efficiency, Marsh McLennan Companies may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At present, Marsh McLennan's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Other Current Liabilities is expected to grow to about 11.3 B, whereas Other Stockholder Equity is projected to grow to (5.5 B). Key indicators impacting Marsh McLennan's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.0880.1652
Way Down
Slightly volatile
Return On Assets0.09530.0782
Fairly Up
Pretty Stable
Return On Equity0.250.3081
Significantly Down
Slightly volatile
Debt Equity Ratio1.331.2662
Sufficiently Up
Slightly volatile
Operating Income5.5 B5.3 B
Sufficiently Up
Slightly volatile
Current Ratio0.981.0987
Fairly Down
Slightly volatile
The financial analysis of Marsh McLennan is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Marsh McLennan includes many different criteria found on its balance sheet. For example, investors should never minimize Marsh McLennan's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Marsh McLennan's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Marsh McLennan.

Cash And Equivalents

1.53 Billion

With this module, you can analyze Marsh financials for your investing period. You should be able to track the changes in Marsh McLennan individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Marsh McLennan Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Marsh McLennan's financial statements are interrelated, with each one affecting the others. For example, an increase in Marsh McLennan's assets may result in an increase in income on the income statement.
Evaluating Marsh McLennan's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Marsh McLennan's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Marsh McLennan's relative financial performance

Chance Of Distress

Less than 6

 
100  
 
Zero
Low
Marsh McLennan Companies has less than 6 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Marsh McLennan stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Marsh McLennan's odds of distress score SHOULD NOT be confused with the real chance of Marsh McLennan Companies filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Marsh is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Marsh McLennan's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Marsh McLennan's official financial statements usually reflect Marsh McLennan's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Marsh McLennan Companies. For example, before you start analyzing numbers published by Marsh accountants, it's critical to develop an understanding of what Marsh McLennan's liquidity, profitability, and earnings quality are in the context of the Insurance space in which it operates.
Please note, the presentation of Marsh McLennan's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Marsh McLennan's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Marsh McLennan's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Marsh McLennan Companies. Please utilize our Beneish M Score to check the likelihood of Marsh McLennan's management manipulating its earnings.

Marsh McLennan Company Summary

Marsh McLennan competes with Insteel Industries, GAMCO Global, PennantPark Floating, Waste Management, and Artisan Partners. Marsh McLennan Companies, Inc., a professional services company, provides advice and solutions to clients in the areas of risk, strategy, and people worldwide. Marsh McLennan Companies, Inc. was founded in 1871 and is headquartered in New York, New York. Marsh Mclennan operates under Insurance Brokers classification in the United States and is traded on New York Stock Exchange. It employs 86000 people.
Specialization
Financial Services, Insurance Brokers
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0000062709
ISINUS5717481023
CUSIP571748102
RegionNorth America
LocationNew York; U.S.A
Business Address1166 Avenue of
SectorInsurance
IndustryFinancials
BenchmarkNYSE Composite
Websitewww.mmc.com
Phone212 345 5000
CurrencyUSD - US Dollar
You should never invest in Marsh McLennan without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Marsh Stock, because this is throwing your money away. Analyzing the key information contained in Marsh McLennan's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Marsh McLennan Key Financial Ratios

Generally speaking, Marsh McLennan's financial ratios allow both analysts and investors to convert raw data from Marsh McLennan's financial statements into concise, actionable information that can be used to evaluate the performance of Marsh McLennan over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Marsh McLennan Companies reports annually and quarterly.

Marsh McLennan Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets31.3B33.0B34.4B33.5B48.0B50.4B
Other Current Liab2.4B2.6B3.1B3.3B10.8B11.3B
Net Debt13.1B11.5B11.4B12.0B12.1B12.7B
Retained Earnings15.2B16.3B18.4B20.3B22.8B23.9B
Cash1.2B2.1B1.8B1.4B3.4B3.5B
Net Receivables5.2B5.3B5.6B5.9B6.4B6.7B
Total Liab23.4B23.8B23.2B22.7B35.7B37.4B
Total Current Assets7.1B8.1B8.3B8.3B21.7B22.8B
Short Term Debt1.6B859M349M578M1.9B2.0B
Intangible Assets2.8B2.7B2.8B2.5B2.6B3.2B
Accounts Payable2.7B3.1B3.2B3.3B3.4B1.8B
Other Current Assets677M740M926M1.0B1.2B1.2B
Other Liab4.1B4.5B3.7B2.6B3.0B3.4B
Other Assets2.9B3.9B4.3B3.9B4.5B2.9B
Long Term Debt10.7B10.8B10.9B11.2B11.8B12.4B
Treasury Stock(3.6B)(3.8B)(3.6B)(4.5B)(4.0B)(3.8B)
Good Will14.7B15.5B16.3B16.3B17.2B10.7B
Net Tangible Assets(7.4B)(6.8B)(7.9B)(6.2B)(5.6B)(5.3B)

Marsh McLennan Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Marsh McLennan's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense524M515M444M469M578M606.9M
Total Revenue16.7B17.2B19.8B20.7B22.7B23.9B
Gross Profit6.9B7.1B8.4B8.6B18.4B19.3B
Operating Income2.7B3.1B4.3B4.3B5.3B5.5B
Ebit2.7B3.1B4.3B4.3B5.3B5.5B
Ebitda3.6B4.1B5.3B5.2B5.3B5.5B
Cost Of Revenue9.7B10.1B11.4B12.1B4.4B6.9B
Income Before Tax2.4B2.8B4.2B4.1B5.0B5.3B
Net Income1.7B2.0B3.1B3.1B3.8B3.9B
Income Tax Expense666M747M1.0B995M1.2B1.3B
Minority Interest31M30M(31M)(37M)(42M)(39.9M)
Tax Provision666M747M1.0B995M1.1B927.4M
Interest Income39M7M381M433M49M46.6M
Net Interest Income(485M)(508M)(442M)(454M)(505M)(530.3M)

Marsh McLennan Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Marsh McLennan Companies. It measures of how well Marsh is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Marsh McLennan brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Marsh had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Marsh McLennan has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash89M934M700M728M2.1B2.2B
Free Cash Flow1.9B3.0B3.1B3.0B3.8B4.0B
Depreciation647M741M747M719M713M420.4M
Other Non Cash Items301M402M(45M)304M277M290.9M
Dividends Paid890M943M1.0B1.1B(1.3B)(1.2B)
Capital Expenditures421M348M406M470M416M371.1M
Net Income1.8B2.0B3.2B3.1B3.8B4.0B
End Period Cash Flow1.2B2.1B11.4B12.1B14.2B14.9B
Change To Netincome429M354M(18M)269M309.4M248.9M
Investments92M107M17M(850M)(1.4B)(1.4B)
Change Receivables(130M)(75M)(252M)(492M)(442.8M)(420.7M)
Net Borrowings4.8B(778M)(273M)619M711.9M492.2M

Marsh Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Marsh McLennan's current stock value. Our valuation model uses many indicators to compare Marsh McLennan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Marsh McLennan competition to find correlations between indicators driving Marsh McLennan's intrinsic value. More Info.
Marsh McLennan Companies is regarded second in z score category among related companies. It is rated top company in revenue category among related companies totaling about  4,156,489,945  of Revenue per Z Score. At present, Marsh McLennan's Total Revenue is projected to increase significantly based on the last few years of reporting. The current year's Cost Of Revenue is expected to grow to about 6.9 B, whereas Ebit Per Revenue is forecasted to decline to 0.19.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Marsh McLennan by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Marsh McLennan's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Marsh McLennan's earnings, one of the primary drivers of an investment's value.

Marsh McLennan Companies Systematic Risk

Marsh McLennan's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Marsh McLennan volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on Marsh McLennan Companies correlated with the market. If Beta is less than 0 Marsh McLennan generally moves in the opposite direction as compared to the market. If Marsh McLennan Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Marsh McLennan Companies is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Marsh McLennan is generally in the same direction as the market. If Beta > 1 Marsh McLennan moves generally in the same direction as, but more than the movement of the benchmark.

About Marsh McLennan Financials

What exactly are Marsh McLennan Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Marsh McLennan's income statement, its balance sheet, and the statement of cash flows. Potential Marsh McLennan investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Marsh McLennan investors may use each financial statement separately, they are all related. The changes in Marsh McLennan's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Marsh McLennan's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Marsh McLennan Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Marsh McLennan is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Marsh has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Marsh McLennan's financials are consistent with your investment objective using the following steps:
  • Review Marsh McLennan's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Marsh McLennan's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Marsh McLennan's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Marsh McLennan's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Marsh McLennan Thematic Clasifications

Marsh McLennan Companies is part of several thematic ideas from Insurance Providers to FinTech. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Marsh McLennan Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Marsh McLennan's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Marsh McLennan growth as a starting point in their analysis.

Price Earnings To Growth Ratio

1.07

At present, Marsh McLennan's Price Earnings To Growth Ratio is projected to drop slightly based on the last few years of reporting.

Marsh McLennan March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Marsh McLennan help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Marsh McLennan Companies. We use our internally-developed statistical techniques to arrive at the intrinsic value of Marsh McLennan Companies based on widely used predictive technical indicators. In general, we focus on analyzing Marsh Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Marsh McLennan's daily price indicators and compare them against related drivers.
When determining whether Marsh McLennan Companies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Marsh McLennan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Marsh Mclennan Companies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Marsh Mclennan Companies Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Marsh McLennan Companies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Stocks Directory module to find actively traded stocks across global markets.

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When running Marsh McLennan's price analysis, check to measure Marsh McLennan's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marsh McLennan is operating at the current time. Most of Marsh McLennan's value examination focuses on studying past and present price action to predict the probability of Marsh McLennan's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marsh McLennan's price. Additionally, you may evaluate how the addition of Marsh McLennan to your portfolios can decrease your overall portfolio volatility.
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Is Marsh McLennan's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marsh McLennan. If investors know Marsh will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marsh McLennan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.643
Dividend Share
2.72
Earnings Share
7.52
Revenue Per Share
46.024
Quarterly Revenue Growth
0.106
The market value of Marsh McLennan Companies is measured differently than its book value, which is the value of Marsh that is recorded on the company's balance sheet. Investors also form their own opinion of Marsh McLennan's value that differs from its market value or its book value, called intrinsic value, which is Marsh McLennan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marsh McLennan's market value can be influenced by many factors that don't directly affect Marsh McLennan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marsh McLennan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marsh McLennan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marsh McLennan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.