What is CapitaLand Ascott Trust Financial Strength?
CapitaLand Ascott Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
CapitaLand Ascott Trust displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
CapitaLand Ascott Trust's Interest Coverage for the quarter that ended in Dec. 2023 was 2.22.
CapitaLand Ascott Trust's debt to revenue ratio for the quarter that ended in Dec. 2023 was 4.17.
As of today, CapitaLand Ascott Trust's Altman Z-Score is 0.77.
Competitive Comparison of CapitaLand Ascott Trust's Financial Strength
For the REIT - Diversified subindustry, CapitaLand Ascott Trust's Financial Strength, along with its competitors' market caps and Financial Strength 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.
CapitaLand Ascott Trust's Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, CapitaLand Ascott Trust's Financial Strength distribution charts can be found below:
* The bar in red indicates where CapitaLand Ascott Trust's Financial Strength falls into.
CapitaLand Ascott Trust Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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:
CapitaLand Ascott Trust's Interest Expense for the
months ended in Dec. 2023 was S$-65.1 Mil. Its Operating Income for the
months ended in Dec. 2023 was S$144.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was S$2,739.7 Mil.
CapitaLand Ascott Trust's Interest Coverage for the quarter that ended in Dec. 2023 is
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. CapitaLand Ascott Trust interest coverage is 2.09, which is low.
2. Debt to revenue ratio. The lower, the better.
CapitaLand Ascott Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
CapitaLand Ascott Trust has a Z-score of 0.77, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.77 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
CapitaLand Ascott Trust (SGX:HMN) Business Description
Traded in Other Exchanges
Address
168 Robinson Road, No. 30-01, Capital Tower, Singapore, SGP, 068912
CapitaLand Ascott Trust, or CLAS, is a hospitality trust focusing on serviced residences, hotels, rental housing and student accommodation. As of Dec. 31, 2022, the trust has a SGD 8.0 billion portfolio, consisting of 105 properties with more than 18,000 units in 47 cities across 15 countries globally. Its main markets include the United States, France, Japan, Singapore, the United Kingdom, Vietnam, China and Australia. The trust is a stapled unit comprising CapitaLand Ascott REIT, which is managed by manager CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust, which is managed by trustee-manager CapitaLand Ascott Business Trust Management Pte. Ltd. Sponsor CapitaLand Investments Limited, owns around a 39% stake in CLAS.
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