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. Hospitality Property Fund's
Operating Income
for the
six
months ended in Sep. 2020 was R28.99 Mil. Hospitality Property Fund's Interest Expense for the
six
months ended in Sep. 2020 was R-102.02 Mil.
Hospitality Property Fund's interest coverage for the quarter that ended in Sep. 2020 was 0.28.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies interest coverage is at least 5. Hospitality Property Fund Ltd interest coverage is 2.09, which is low.
The historical rank and industry rank for Hospitality Property Fund's Interest Coverage or its related term are showing as below:
JSE:TSP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.89 Med: 1.27 Max: 4.28
Current: 2.09
JSE:TSP's Interest Coverage is not ranked
in the REITs industry.
Industry Median: 3.12
vs JSE:TSP: 2.09
Hospitality Property Fund (JSE:TSP) 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 .
Hospitality Property Fund Interest Coverage Related Terms
Hospitality Property Fund Interest Coverage Historical Data
* 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.
JSE:TSP vs HST, PK, APLE: Interest Coverage Comparison
For the REIT - Hotel & Motel subindustry, Hospitality Property Fund'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.
Hospitality Property Fund Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Hospitality Property Fund's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hospitality Property Fund's Interest Coverage falls into.
Hospitality Property Fund 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:
* 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.
Hospitality Property Fund (JSE:TSP) has a Interest Coverage of 0.28 as of Sep. 2020. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hospitality Property Fund and its competitors. This is 78% below median its historical median of 1.27. Over the past decade, Hospitality Property Fund's Interest Coverage has ranged from 0.89 to 4.28.
Is Hospitality Property Fund's Interest Coverage too high?
Hospitality Property Fund's current Interest Coverage of 0.28 is 78% below median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 4.28. The REITs industry median Interest Coverage is 3.12. Hospitality Property Fund's value of 0.28 is 91% below this industry median. Overall, Hospitality Property Fund has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Hospitality Property Fund's Interest Coverage compare to HST and PK?
Hospitality Property Fund's Interest Coverage of 0.28 can be compared against companies in the REITs industry. The industry median Interest Coverage is 3.12. Hospitality Property Fund's value of 0.28 is 91% below this benchmark. Historically, Hospitality Property Fund's own Interest Coverage has ranged from 0.89 to 4.28 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 3.12, Hospitality Property Fund has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 701 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hospitality Property Fund's current Interest Coverage of 0.28 is 91% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hospitality Property Fund and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hospitality Property Fund's current Interest Coverage is 0.28, which is 78% below median its own 10-year median of 1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hospitality Property Fund stock overvalued right now?
Hospitality Property Fund (JSE:TSP) has a current Interest Coverage of 0.28. The current Interest Coverage is 0.28, which is 78% below median its 10-year median of 1.27 and 91% below the REITs industry median of 3.12. Hospitality Property Fund's overall GF Score™ is 11/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hospitality Property Fund (JSE:TSP), the current Interest Coverage is 0.28 as of Sep. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Hospitality Property Fund Ltd is a specialised real estate investment trust investing in the hotel and leisure sector, providing investors with exposure to both the property and hospitality industries. The company's portfolio caters to a wide-ranging domestic and international market and accommodates various segments including corporate, government, leisure, group conferencing and event business. The properties are well diversified in terms of geographic location and class of hotel, thus mitigating the inherent risks associated within the cyclical nature of the hospitality industry.
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