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Forest City Realty Trust Inc (NYSE:FCE.A)
Interest Coverage
0.00 (As of Sep. 2015)

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. Forest City Realty Trust Inc's Operating Income for the three months ended in Sep. 2015 was $-390 Mil. Forest City Realty Trust Inc's Interest Expense for the three months ended in Sep. 2015 was $-49 Mil. Forest City Realty Trust Inc's interest coverage for the quarter that ended in Sep. 2015 was 0.00. The higher the ratio, the stronger the company’s financial strength is.

During the past 13 years, the highest interest coverage of Forest City Realty Trust Inc was 1.24. The lowest was 0.29. And the median was 0.75.


Definition

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 is 0, then

The company had no debt.

Forest City Realty Trust Inc's Interest Coverage for the fiscal year that ended in Dec. 2014 is calculated as

Here, for the fiscal year that ended in Dec. 2014, Forest City Realty Trust Inc's Interest Expense was $-234 Mil. Its Operating Income was $-177 Mil. And its Long-Term Debt was $4,938 Mil.

Forest City Realty Trust Inc did not have earnings to cover the interest expense.

Forest City Realty Trust Inc's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, Forest City Realty Trust Inc's Interest Expense was $-49 Mil. Its Operating Income was $-390 Mil. And its Long-Term Debt was $4,773 Mil.

Forest City Realty Trust Inc did not have earnings to cover the interest expense.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.


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.


Related Terms

Operating Income, Interest Expense, Financial Strength


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Forest City Realty Trust Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Dec14
interest_coverage 1.011.240.940.840.640.750.720.290.50At Loss

Forest City Realty Trust Inc Quarterly Data

Apr13Jul13Oct13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
interest_coverage 0.32At LossAt Loss0.38At Loss0.47At Loss0.280.46At Loss
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