NexPoint Residential Trust (NexPoint Residential Trust) Interest Coverage : 0.41 (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

What is NexPoint Residential 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. NexPoint Residential Trust's Operating Income for the three months ended in Dec. 2023 was $11.7 Mil. NexPoint Residential Trust's Interest Expense for the three months ended in Dec. 2023 was $-28.6 Mil. NexPoint Residential Trust's interest coverage for the quarter that ended in Dec. 2023 was 0.41. 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. NexPoint Residential 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 NexPoint Residential Trust's Interest Coverage or its related term are showing as below:

NXRT' s Interest Coverage Range Over the Past 10 Years
Min: 0.4 Med: 0.54 Max: 1.15
Current: 0.42

NXRT's Interest Coverage is ranked worse than
96.43% of 672 companies
in the REITs industry
Industry Median: 2.98 vs NXRT: 0.42

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

NexPoint Residential Trust Interest Coverage Historical Data

The historical data trend for NexPoint Residential 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.

* Premium members only.

NexPoint Residential Trust Interest Coverage Chart

NexPoint Residential Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

0.40

0.42

0.66

0.54

0.41

NexPoint Residential Trust Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															0.52	0.36	0.36	0.41	0.64

Competitive Comparison of NexPoint Residential Trust's Interest Coverage

For the REIT - Residential subindustry, NexPoint Residential 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.

NexPoint Residential Trust's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where NexPoint Residential Trust's Interest Coverage falls into.

NexPoint Residential 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.

NexPoint Residential 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, NexPoint Residential Trust's Interest Expense was $-110.4 Mil. Its Operating Income was $45.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,477.0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	45.252	/	-110.394
	=	0.41

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

Here, for the three months ended in Dec. 2023, NexPoint Residential Trust's Interest Expense was $-28.6 Mil. Its Operating Income was $11.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,477.0 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	11.714	/	-28.603
	=	0.41

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

NexPoint Residential Trust (NYSE:NXRT) 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 .

NexPoint Residential Trust Interest Coverage Related Terms

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

NexPoint Residential Trust (NexPoint Residential Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » NexPoint Residential Trust Inc (NYSE:NXRT) » Definitions » Interest Coverage

Comparable Companies

CSR AIV UMH BRT ELME VRE CLPR BHM IRT AVB EQR INVH MAA SUI ESS ELS AMH UDR CPT TSX:CAR.UN

Traded in Other Exchanges

N/A

Address

300 Crescent Court, Suite 700, Dallas, TX, USA, 75201

Website

https://www.nexpointliving.com

NexPoint Residential Trust Inc is an us-based real estate investment trust company. Its company's investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions, and achieve long-term capital appreciation for stockholders. The company seeks to achieve these objectives through targeted management and a capex value-add program. It focuses on acquiring multifamily properties in markets with attractive job growth and household formation fundamentals primarily in the Southeastern and Southwestern United States. The company generates revenue from the rental of multifamily properties.

Executives

Brian Mitts	director, officer: See Remarks	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
James D Dondero	director, 10 percent owner, officer: President	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Sauter Dennis Charles Jr	officer: General Counsel	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Arthur B Laffer	director	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Carol Swain	director	C/O NEXPOINT RESIDENTIAL TRUST, INC., 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Catherine D Wood	director	200 CENTRAL AVENUE, SUITE 1850, ST. PETERSBURG FL 33701
Matt Mcgraner	officer: See Remarks	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Matthew Goetz	officer: See Remarks	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Highland Capital Management Fund Advisors, L.p.	10 percent owner	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Edward N. Constantino	director	DLC REALTY TRUST, INC., 580 WHITE PLAINS ROAD, TARRYTOWN NY 10591
Scott F Kavanaugh	director	25342 DERBYHILL DR., LAGUNA HILLS CA 92653
Nexpoint Advisors, L.p.	10 percent owner	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Scott Ellington	officer: General Counsel and Secretary	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Nexpoint Diversified Real Estate Trust	10 percent owner	300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Highland Capital Management Lp	10 percent owner	100 CRESCENT COURT, SUITE 1850, DALLAS TX 75201