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Far East Hospitality Trust (SGX:Q5T) Interest Coverage : 2.90 (As of Dec. 2024)


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What is Far East Hospitality Trust 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. Far East Hospitality Trust's Operating Income for the six months ended in Dec. 2024 was S$44.0 Mil. Far East Hospitality Trust's Interest Expense for the six months ended in Dec. 2024 was S$-15.2 Mil. Far East Hospitality Trust's interest coverage for the quarter that ended in Dec. 2024 was 2.90. 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. Far East Hospitality Trust interest coverage is 2.89, which is low.

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

SGX:Q5T' s Interest Coverage Range Over the Past 10 Years
Min: 2.62   Med: 3.48   Max: 4.44
Current: 2.89


SGX:Q5T's Interest Coverage is ranked better than
50.49% of 711 companies
in the REITs industry
Industry Median: 2.84 vs SGX:Q5T: 2.89

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


Far East Hospitality Trust Interest Coverage Historical Data

The historical data trend for Far East Hospitality 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.

* Premium members only.

Far East Hospitality Trust Interest Coverage Chart

Far East Hospitality Trust Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.62 3.37 3.74 3.53 2.94

Far East Hospitality Trust Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 3.56 3.58 3.34 2.87 2.90

Competitive Comparison of Far East Hospitality Trust's Interest Coverage

For the REIT - Diversified subindustry, Far East Hospitality 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.


Far East Hospitality Trust's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Far East Hospitality Trust's Interest Coverage falls into.


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Far East Hospitality 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.

Far East Hospitality Trust's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Far East Hospitality Trust's Interest Expense was S$-29.8 Mil. Its Operating Income was S$87.6 Mil. And its Long-Term Debt & Capital Lease Obligation was S$716.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*87.584/-29.777
=2.94

Far East Hospitality Trust's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Far East Hospitality Trust's Interest Expense was S$-15.2 Mil. Its Operating Income was S$44.0 Mil. And its Long-Term Debt & Capital Lease Obligation was S$716.5 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*44.021/-15.155
=2.90

* 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.


Far East Hospitality Trust  (SGX:Q5T) 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 .


Far East Hospitality Trust Interest Coverage Related Terms

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


Far East Hospitality Trust Business Description

Traded in Other Exchanges
N/A
Address
1 Tanglin Road, No. 05-01, Orchard Rendezvous Hotel, Singapore, SGP, 247905
Far East Hospitality Trust is a Singapore-based business trust that operates and invests in hotel properties. Although its operations are in Singapore, the company has hotel customers from Southeast Asia, North Asia, Europe, Oceania, South Asia, and North America among others that contribute to its overall revenue. It has two reportable business segments Hotels and serviced residences, and Retail units, offices, and others. It generates the majority of its revenue from Hotels and serviced residences.

Far East Hospitality Trust Headlines

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