Ashford Hospitality Trust (Ashford Hospitality Trust) Interest Coverage : 0.13 (As of Dec. 2023)

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What is Ashford Hospitality Trust Interest Coverage?

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 by its Interest Expense. Ashford Hospitality Trust's Operating Income for the three months ended in Dec. 2023 was $13 Mil. Ashford Hospitality Trust's Interest Expense for the three months ended in Dec. 2023 was $-96 Mil. Ashford Hospitality Trust's interest coverage for the quarter that ended in Dec. 2023 was 0.13. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Ashford Hospitality Trust Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Ashford Hospitality Trust's Interest Coverage or its related term are showing as below:

AHT' s Interest Coverage Range Over the Past 10 Years
Min: 0.32 Med: 0.57 Max: 0.87
Current: 0.32

AHT's Interest Coverage is ranked worse than
97.77% of 672 companies
in the REITs industry
Industry Median: 2.98 vs AHT: 0.32

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ashford Hospitality Trust Interest Coverage Historical Data

The historical data trend for Ashford Hospitality Trust's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ashford Hospitality Trust Interest Coverage Chart

Ashford Hospitality Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.47

0.33

0.32

Ashford Hospitality Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															0.21	0.29	0.58	0.31	0.13

Competitive Comparison of Ashford Hospitality Trust's Interest Coverage

For the REIT - Hotel & Motel subindustry, Ashford Hospitality Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ashford Hospitality Trust's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ashford Hospitality Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ashford Hospitality Trust's Interest Coverage falls into.

Ashford Hospitality Trust Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ashford Hospitality Trust's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Ashford Hospitality Trust's Interest Expense was $-366 Mil. Its Operating Income was $119 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,459 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	118.955	/	-366.148
	=	0.32

Ashford Hospitality Trust's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Ashford Hospitality Trust's Interest Expense was $-96 Mil. Its Operating Income was $13 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,459 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	12.607	/	-95.663
	=	0.13

The higher the ratio, the stronger the company's Financial Strength is.

Ashford Hospitality Trust (NYSE:AHT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ashford Hospitality Trust Interest Coverage Related Terms

Thank you for viewing the detailed overview of Ashford Hospitality Trust's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Ashford Hospitality Trust (Ashford Hospitality Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Ashford Hospitality Trust Inc (NYSE:AHT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AHTpI.PFD:USA AHTpH.PFD:USA AHTpG.PFD:USA AHTpF.PFD:USA AHTpD.PFD:USA

Address

14185 Dallas Parkway, Suite 1200, Dallas, TX, USA, 75254

Website

https://www.ahtreit.com

Ashford Hospitality Trust Inc. is a real estate investment trust that invests in full-service upscale and upper-upscale hotel properties in the U.S. The company owns and operates its assets through its operating partnership, Ashford Hospitality Limited Partnership. All of its hotels are located across the U.S. and operate under the Marriott, Hilton, Hyatt, Crowne Plaza, and Sheraton brands. Ashford's sole segment is Direct Hotel Investments, through which it owns hotels by acquisition or development. Ashford also provides rest estate investment services, such as mezzanine financing, first mortgage financing, and sales-leaseback transactions. Its revenue streams include Room revenue, Food and beverage revenue, and Other revenue. Room revenue accounts for the majority of total revenue.

Executives

Davinder Singh Sra	director	14185 DALLAS PARKWAY, SUITE 1200, DALLAS TX 75254
Deric S Eubanks	officer: Chief Financial Officer	14185 DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Ansell Benjamin J Md	director	14185 DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Brookfield Asset Management Inc.	10 percent owner	BROOKFIELD PLACE, 181 BAY ST, STE 100, PO BOX 762, TORONTO A6 M5J2T3
Oaktree Fund Gp I, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Aif Investment Gp, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Aif Investments, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Fund Gp Aif, Llc	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGLES CA 90071
Oaktree Fund Aif Series, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Fund Gp Iii, L.p.	10 percent owner	333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Atlas Ocm Holdings, Llc	10 percent owner	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Bam Partners Trust	10 percent owner	181 BAY STREET, SUITE 300, TORONTO A6 M5J 2T3
Oaktree Capital Management Gp, Llc	10 percent owner	333 SOUTH GRAND AVE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Real Estate Opportunities Fund Viii Gp Ltd.	10 percent owner	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FL, LOS ANGELES CA 90071
Oaktree Real Estate Opportunities Fund Viii Gp, L.p.	10 percent owner	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FL, LOS ANGELES CA 90071