ARA US Hospitality Trust (SGX:XZL) Interest Coverage : 0.85 (As of Dec. 2023)

View and export this data going back to 2019. Start your Free Trial

What is ARA US 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. ARA US Hospitality Trust's Operating Income for the six months ended in Dec. 2023 was $6.8 Mil. ARA US Hospitality Trust's Interest Expense for the six months ended in Dec. 2023 was $-8.0 Mil. ARA US Hospitality Trust's interest coverage for the quarter that ended in Dec. 2023 was 0.85. 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. ARA US Hospitality Trusts 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 ARA US Hospitality Trust's Interest Coverage or its related term are showing as below:

SGX:XZL' s Interest Coverage Range Over the Past 10 Years
Min: 0.64 Med: 2.71 Max: 3.18
Current: 0.9

SGX:XZL's Interest Coverage is ranked worse than
89.72% of 671 companies
in the REITs industry
Industry Median: 2.95 vs SGX:XZL: 0.90

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

ARA US Hospitality Trust Interest Coverage Historical Data

The historical data trend for ARA US 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.

ARA US Hospitality Trust Interest Coverage Chart

ARA US Hospitality Trust Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

N/A

0.64

0.90

ARA US Hospitality Trust Semi-Annual Data
	Dec16	Dec17	Dec18	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial						0.47	1.09	0.24	0.97	0.85

Competitive Comparison of ARA US Hospitality Trust's Interest Coverage

For the REIT - Hotel & Motel subindustry, ARA US 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.

ARA US Hospitality Trust's Interest Coverage Distribution in the REITs Industry

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

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

ARA US 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.

ARA US Hospitality Trust'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, ARA US Hospitality Trust's Interest Expense was $-15.5 Mil. Its Operating Income was $14.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $324.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	13.984	/	-15.463
	=	0.90

ARA US Hospitality Trust's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, ARA US Hospitality Trust's Interest Expense was $-8.0 Mil. Its Operating Income was $6.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $324.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	6.783	/	-8.019
	=	0.85

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

ARA US Hospitality Trust (SGX:XZL) 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 .

ARA US Hospitality Trust Interest Coverage Related Terms

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

ARA US Hospitality Trust (SGX:XZL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » ARA US Hospitality Trust (SGX:XZL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

5 Temasek Boulevard, No. 12-01 Suntec Tower Five, Singapore, SGP, 038985

Website

https://www.araushotels.com

ARA US Hospitality Trust is a hospitality stapled group comprising ARA H-REIT, a real estate investment trust constituted in Singapore, and ARA H-BT, a registered business trust constituted in Singapore. It offers investors the unique opportunity to invest in the upscale select-service hospitality sector across key growth regions of the United States. The company's operating segment includes Hyatt Place, Hyatt House and Marriott. It generates maximum revenue from the Hyatt Place segment. The portfolio of the group comprises 38 hotels, consisting of 27 Hyatt Place hotels and 11 Hyatt House hotels.

ARA US Hospitality Trust (SGX:XZL) Headlines

No Headlines