Elme Communities (Elme Communities) Interest Coverage

: 0.67 (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. Elme Communities's Operating Income for the three months ended in Dec. 2023 was $6.3 Mil. Elme Communities's Interest Expense for the three months ended in Dec. 2023 was $-9.4 Mil. Elme Communities's interest coverage for the quarter that ended in Dec. 2023 was 0.67. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Elme Communities's Interest Coverage or its related term are showing as below:

ELME' s Interest Coverage Range Over the Past 10 Years
Min: 0.06 Med: 1.03 Max: 1.32
Current: 0.73

ELME's Interest Coverage is ranked worse than
92.77% of 678 companies
in the REITs industry
Industry Median: 3 vs ELME: 0.73

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

Elme Communities Interest Coverage Historical Data

The historical data trend for Elme Communities'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.

Elme Communities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.34

0.06

0.32

0.83

Elme Communities Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.89	0.47	0.89	0.90	0.67

Competitive Comparison

For the REIT - Residential subindustry, Elme Communities'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.

Elme Communities Interest Coverage Distribution

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

* The bar in red indicates where Elme Communities's Interest Coverage falls into.

Elme Communities 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.

Elme Communities'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, Elme Communities's Interest Expense was $-30.4 Mil. Its Operating Income was $25.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $522.3 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	25.136	/	-30.429
	=	0.83

Elme Communities's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Elme Communities's Interest Expense was $-9.4 Mil. Its Operating Income was $6.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $522.3 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.281	/	-9.386
	=	0.67

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

Elme Communities (NYSE:ELME) 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 .

Elme Communities Interest Coverage Related Terms

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

Elme Communities (Elme Communities) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Elme Communities (NYSE:ELME) » Definitions » Interest Coverage

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Traded in Other Exchanges

WRI:Germany

Address

1775 Eye Street North West, Suite 1000, Washington, DC, USA, 20006

Website

https://www.elmecommunities.com

Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located primarily near major transportation nodes. Washington REIT derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Washington REIT's largest tenants are banking, consulting, law, and financial services firms.

Executives

Susan Carras	director	345 PARK AVENUE, NEW YORK NY 10154
Tiffany Michelle Butcher	officer: EVP & COO	1775 EYE STREET NW, SUITE 1000, WASHINGTON DC 20006
Steven Freishtat	officer: EVP & CFO	1775 EYE STREET NW, SUITE 1000, WASHINGTON DC 20006
Jennifer S Banner	director	214N TRYON STREET, CHARLOTTE NC 28202
Susan Lilly Gerock	officer: SVP & CIO	1775 EYE STREET, NW, SUITE 1000, WASHINGTON DC 20006
Ellen M. Goitia	director	1775 EYE STREET, NW, SUITE 1000, WASHINGTON DC 20006
Taryn D. Fielder	officer: SVP, GC & Corporate Secretary	1775 EYE STREET, N.W., SUITE 1000, WASHINGTON DC 20006
Murn Edward J. Iv	officer: Managing Director, Residential	6110 EXECUTIVE BOULEVARD, SUITE 800, ROCKVILLE MD 20852
Wade Drew Hammond	officer: VP & CAO elect & Controller	1775 EYE ST., NW, SUITE 1000, WASHINGTON DC 20006
John P Mcdaniel	other: Trustee	C/O MEDIFAST, INC., 3600 CRONDALL LANE, OWINGS MILLS MD 21117
Stephen Edward Riffe	officer: E.V.P. & CFO-elect	1775 EYE STREET, NW, SUITE 1000, WASHINGTON DC 20006
Nolan Thomas H Jr	director	14631 NORTH SCOTTSDALE RD, SUITE 200, SCOTTSDALE AZ 85254
Laura M Franklin	officer: S.V.P. & Corp. Sec.	CONSOLIDATED-TOMOKA LAND CO., PO BOX 10809, DAYTONA BEACH FL 32120
Thomas L Regnell	officer: Mnging. Dir. - Acquisitions
Benjamin S Butcher	director	ONE FEDERAL STREET, 23RD FLOOR, BOSTON MA 02110