Chatham Lodging Trust (Chatham Lodging Trust) Interest Coverage

: 0.21 (As of Dec. 2023)

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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. Chatham Lodging Trust's Operating Income for the three months ended in Dec. 2023 was $1.5 Mil. Chatham Lodging Trust's Interest Expense for the three months ended in Dec. 2023 was $-7.1 Mil. Chatham Lodging Trust's interest coverage for the quarter that ended in Dec. 2023 was 0.21. The higher the ratio, the stronger the company's financial strength is.

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

CLDT' s Interest Coverage Range Over the Past 10 Years
Min: 1.27 Med: 2.11 Max: 2.31
Current: 1.27

CLDT's Interest Coverage is ranked worse than
82.87% of 677 companies
in the REITs industry
Industry Median: 3.01 vs CLDT: 1.27

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

Chatham Lodging Trust Interest Coverage Historical Data

The historical data trend for Chatham Lodging 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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Chatham Lodging Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.06

1.33

1.27

Chatham Lodging 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																0.71	0.34	2.50	2.12	0.21

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Chatham Lodging 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.

Chatham Lodging Trust Interest Coverage Distribution

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

* The bar in red indicates where Chatham Lodging Trust's Interest Coverage falls into.

Chatham Lodging 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.

Chatham Lodging 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, Chatham Lodging Trust's Interest Expense was $-25.9 Mil. Its Operating Income was $32.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $504.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	32.862	/	-25.918
	=	1.27

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

Here, for the three months ended in Dec. 2023, Chatham Lodging Trust's Interest Expense was $-7.1 Mil. Its Operating Income was $1.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $504.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1.523	/	-7.084
	=	0.21

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

Chatham Lodging Trust (NYSE:CLDT) 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 .

Chatham Lodging Trust Interest Coverage Related Terms

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

Chatham Lodging Trust (Chatham Lodging Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Chatham Lodging Trust (NYSE:CLDT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

222 Lakeview Avenue, Suite 200, West Palm Beach, FL, USA, 33401

Website

https://www.chathamlodgingtrust.com

Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.

Executives

Ethel Issacs Williams	director	222 LAKEVIEW AVE, SUITE 200, WEST PALM BEACH FL 33401
Dennis M Craven	officer: EVP & Chief Financial Officer	850 RIDGE LAKE BLVD, STE 300, MEMPHIS TN 38120
Jeffrey H Fisher	director, officer: Chairman, President and CEO	50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
David Grissen	director	10400 FERNWOOD ROAD, BETHESDA MD 20817
Robert D Perlmutter	director	THE MACERICH COMPANY, 401 WILSHIRE BLVD., SUITE 700, SANTA MONICA CA 90401
C Gerald Goldsmith	director	50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Mary Elizabeth Higgins	director	3525 E. POST ROAD #120, LAS VEGAS NV 89120
Peter Willis	officer: EVP & Chief Investment Officer	50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Brewer Edwin B Jr	director	C/O EDUCATION REALTY TRUST, INC., 999 SOUTH SHADY GROVE ROAD, SUITE 600, MEMPHIS TN 38120
Jeremy Bruce Wegner	officer: Chief Financial Officer	8000 PORTOFINO CIRCLE, APARTMENT 101, PALM BEACH GARDENS FL 33418
Chatham Lodging Trust	officer: Chief Financial Officer	222 LAKEVIEW AVENUE, SUITE 200, WEST PALM BEACH FL 33401
Joel F Zemans	director	50 COCOANUT ROW, SUITE 200, PALM BEACH FL 33480
Miles L Berger	director
Julio E Morales	officer: EVP, Chief Financial Officer	3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Thomas J Crocker	director	433 PLAZA REAL STE 335, BOCA RATON FL 33432