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Deutsche Wohnen SE (XTER:DWNI) Interest Coverage : 2.25 (As of Jun. 2023)


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What is Deutsche Wohnen SE 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. Deutsche Wohnen SE's Operating Income for the three months ended in Jun. 2023 was €87.2 Mil. Deutsche Wohnen SE's Interest Expense for the three months ended in Jun. 2023 was €-38.7 Mil. Deutsche Wohnen SE's interest coverage for the quarter that ended in Jun. 2023 was 2.25. 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. Deutsche Wohnen SE interest coverage is 2.25, which is low.

The historical rank and industry rank for Deutsche Wohnen SE's Interest Coverage or its related term are showing as below:

XTER:DWNI' s Interest Coverage Range Over the Past 10 Years
Min: 0.19   Med: 3.4   Max: 5.35
Current: 2.25


XTER:DWNI's Interest Coverage is ranked worse than
66.44% of 1350 companies
in the Real Estate industry
Industry Median: 3.985 vs XTER:DWNI: 2.25

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


Deutsche Wohnen SE Interest Coverage Historical Data

The historical data trend for Deutsche Wohnen SE'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.

Deutsche Wohnen SE Interest Coverage Chart

Deutsche Wohnen SE 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 5.35 3.90 2.74 3.49 2.80

Deutsche Wohnen SE Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - 8.50 N/A 2.25 N/A

Competitive Comparison of Deutsche Wohnen SE's Interest Coverage

For the Real Estate Services subindustry, Deutsche Wohnen SE'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.


Deutsche Wohnen SE's Interest Coverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Deutsche Wohnen SE's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Deutsche Wohnen SE's Interest Coverage falls into.



Deutsche Wohnen SE 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.

Deutsche Wohnen SE'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, Deutsche Wohnen SE's Interest Expense was €-169.8 Mil. Its Operating Income was €474.8 Mil. And its Long-Term Debt & Capital Lease Obligation was €8,339.6 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*474.8/-169.8
=2.80

Deutsche Wohnen SE's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, Deutsche Wohnen SE's Interest Expense was €-38.7 Mil. Its Operating Income was €87.2 Mil. And its Long-Term Debt & Capital Lease Obligation was €8,366.5 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*87.2/-38.7
=2.25

* 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.


Deutsche Wohnen SE  (XTER:DWNI) 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 .


Deutsche Wohnen SE Interest Coverage Related Terms

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


Deutsche Wohnen SE (XTER:DWNI) Business Description

Traded in Other Exchanges
Address
Mecklenburgische Strasse 57, Berlin, BB, DEU, 14197
Deutsche Wohnen SE is a holding company that manages a collection of residential real estate properties in Germany. The company operates in five segments: Rental; Value-add; Recurring Sales; Development and Care.
Executives
Tina Kleingarn Supervisory Board
Lars Urbansky Board of Directors
Michael Zahn Board of Directors
Henrik Thomsen Board of Directors

Deutsche Wohnen SE (XTER:DWNI) Headlines

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