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Kb Star REIT Co (XKRX:432320) Interest Coverage : 1.55 (As of Apr. 2025)


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What is Kb Star REIT Co 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. Kb Star REIT Co's Operating Income for the six months ended in Apr. 2025 was ₩7,664 Mil. Kb Star REIT Co's Interest Expense for the six months ended in Apr. 2025 was ₩-4,959 Mil. Kb Star REIT Co's interest coverage for the quarter that ended in Apr. 2025 was 1.55. 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. Kb Star REIT Co Ltd interest coverage is 1.39, which is low.

The historical rank and industry rank for Kb Star REIT Co's Interest Coverage or its related term are showing as below:

XKRX:432320' s Interest Coverage Range Over the Past 10 Years
Min: 0.55   Med: 4.48   Max: No Debt
Current: 1.39


XKRX:432320's Interest Coverage is ranked worse than
80.33% of 717 companies
in the REITs industry
Industry Median: 2.84 vs XKRX:432320: 1.39

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


Kb Star REIT Co Interest Coverage Historical Data

The historical data trend for Kb Star REIT Co'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.

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Kb Star REIT Co Interest Coverage Chart

Kb Star REIT Co Annual Data
Trend Jun22 Jan23 Jan24 Jan25
Interest Coverage
No Debt 0.55 6.78 2.17

Kb Star REIT Co Semi-Annual Data
Mar22 Sep22 Apr23 Oct23 Apr24 Oct24 Apr25
Interest Coverage Get a 7-Day Free Trial 2.48 1.23 1.67 1.25 1.55

Competitive Comparison of Kb Star REIT Co's Interest Coverage

For the REIT - Office subindustry, Kb Star REIT Co'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.


Kb Star REIT Co's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Kb Star REIT Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Kb Star REIT Co's Interest Coverage falls into.


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Kb Star REIT Co 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.

Kb Star REIT Co's Interest Coverage for the fiscal year that ended in Jan. 2025 is calculated as

Here, for the fiscal year that ended in Jan. 2025, Kb Star REIT Co's Interest Expense was ₩-12,237 Mil. Its Operating Income was ₩26,610 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩542,887 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2025 )/Interest Expense (A: Jan. 2025 )
=-1*26609.651/-12237.353
=2.17

Kb Star REIT Co's Interest Coverage for the quarter that ended in Apr. 2025 is calculated as

Here, for the six months ended in Apr. 2025, Kb Star REIT Co's Interest Expense was ₩-4,959 Mil. Its Operating Income was ₩7,664 Mil. And its Long-Term Debt & Capital Lease Obligation was ₩593,911 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2025 )/Interest Expense (Q: Apr. 2025 )
=-1*7664.456/-4958.892
=1.55

* 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.


Kb Star REIT Co  (XKRX:432320) 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 .


Kb Star REIT Co Interest Coverage Related Terms

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


Kb Star REIT Co Business Description

Traded in Other Exchanges
N/A
Address
10, Gukjegeumyung-ro, 40th Floor, 41th Floor, Three IFC, Yeongdeungpo-gu, Seoul, KOR, 07326
Kb Star REIT Co Ltd is a publicly traded REITs operating on a going concern basis with base assets including the Galaxy Tower in Belgium and Samsung's Europe HQ in the UK.

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