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Clipper Realty (Clipper Realty) Interest Coverage : 0.77 (As of Mar. 2024)


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What is Clipper Realty 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. Clipper Realty's Operating Income for the three months ended in Mar. 2024 was $9.1 Mil. Clipper Realty's Interest Expense for the three months ended in Mar. 2024 was $-11.7 Mil. Clipper Realty's interest coverage for the quarter that ended in Mar. 2024 was 0.77. 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. Clipper Realty 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 Clipper Realty's Interest Coverage or its related term are showing as below:

CLPR' s Interest Coverage Range Over the Past 10 Years
Min: 0.65   Med: 0.78   Max: 1.61
Current: 0.77


CLPR's Interest Coverage is ranked worse than
92.18% of 665 companies
in the REITs industry
Industry Median: 2.94 vs CLPR: 0.77

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


Clipper Realty Interest Coverage Historical Data

The historical data trend for Clipper Realty'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.

Clipper Realty Interest Coverage Chart

Clipper Realty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.95 0.78 0.65 0.70 0.75

Clipper Realty 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.68 0.74 0.80 0.76 0.77

Competitive Comparison of Clipper Realty's Interest Coverage

For the REIT - Residential subindustry, Clipper Realty'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.


Clipper Realty's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Clipper Realty's Interest Coverage falls into.



Clipper Realty 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.

Clipper Realty'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, Clipper Realty's Interest Expense was $-44.9 Mil. Its Operating Income was $33.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,205.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*33.527/-44.867
=0.75

Clipper Realty's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Clipper Realty's Interest Expense was $-11.7 Mil. Its Operating Income was $9.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,226.7 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*9.072/-11.738
=0.77

* 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.

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


Clipper Realty  (NYSE:CLPR) 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 .


Clipper Realty Interest Coverage Related Terms

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


Clipper Realty (Clipper Realty) Business Description

Traded in Other Exchanges
N/A
Address
4611 12th Avenue, Suite 1L, Brooklyn, NY, USA, 11219
Clipper Realty Inc is a self-administered and self-managed real estate company. It acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. It has classified its reporting segments into commercial and residential rental properties. Clipper derives its revenue mostly from a Residential segment.
Executives
Howard M Lorber director 4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Harmon Spolan director OOZEN O CONNOR, 1900 MARKET ST 4TH FL, PHILADELPHIA PA 19103
Sam Levinson director, 10 percent owner 9190 PRIORITY WAY WEST DRIVE, SUITE 300, INDIANAPOLIS IN 46240
David Bistricer director, 10 percent owner, officer: Co-Chairman and CEO PO BOX 407, BROOKLIN NY 11219
Michael Charles Frenz officer: Chief Financial Officer C/O CLIPPER REALTY INC, 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Roberto Angelo Verrone director 200 HIGHLAND AVENUE, SHORT HILLS NJ 07078
Robert Jay Ivanhoe director GREENBERG TRAURIG, LLP, 200 PARK AVENUE, NEW YORK NY 10166
Richard N Burger director P.O. BOX 28543, SCOTTSDALE AZ 85255
Lawrence E Kreider officer: Chief Financial Officer 600 GRANT STREET, SUITE 900, DENVER CO 80203
Jacob Bistricer officer: Chief Operating Officer 4611 12TH AVENUE, SUITE 1L, BROOKLYN NY 11219
Jacob Schwimmer officer: Chief PM Offcier 1738 47TH STREET, BROOKLYN NY 11204

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