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Forest City Realty Trust (Forest City Realty Trust) Interest Coverage : 1.59 (As of Sep. 2018)


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What is Forest City Realty 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. Forest City Realty Trust's Operating Income for the three months ended in Sep. 2018 was $49.2 Mil. Forest City Realty Trust's Interest Expense for the three months ended in Sep. 2018 was $-30.9 Mil. Forest City Realty Trust's interest coverage for the quarter that ended in Sep. 2018 was 1.59. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Forest City Realty Trust's Interest Coverage or its related term are showing as below:


FCE.B's Interest Coverage is not ranked *
in the REITs industry.
Industry Median: 2.98
* Ranked among companies with meaningful Interest Coverage only.

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


Forest City Realty Trust Interest Coverage Historical Data

The historical data trend for Forest City Realty 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.

Forest City Realty Trust Interest Coverage Chart

Forest City Realty Trust Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Dec14 Dec15 Dec16 Dec17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.64 0.43 0.94 1.19 1.46

Forest City Realty Trust Quarterly Data
Oct13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 1.46 1.66 1.61 1.75 1.59

Competitive Comparison of Forest City Realty Trust's Interest Coverage

For the REIT - Retail subindustry, Forest City Realty 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.


Forest City Realty Trust's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Forest City Realty Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Forest City Realty Trust's Interest Coverage falls into.



Forest City Realty 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.

Forest City Realty Trust's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, Forest City Realty Trust's Interest Expense was $-120.4 Mil. Its Operating Income was $175.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,444.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2017 )/Interest Expense (A: Dec. 2017 )
=-1*175.676/-120.431
=1.46

Forest City Realty Trust's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the three months ended in Sep. 2018, Forest City Realty Trust's Interest Expense was $-30.9 Mil. Its Operating Income was $49.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,529.8 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*49.169/-30.87
=1.59

* 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.


Forest City Realty Trust  (NYSE:FCE.B) 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 .


Forest City Realty Trust Interest Coverage Related Terms

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Forest City Realty Trust (Forest City Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Forest City Realty Trust Inc is engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. The company's segments include the Commercial Group, Residential Group, Land Development Group and Corporate Activities. It operates mixed-use projects such as residential rental properties, regional malls, specialty/urban retail centers, office and life science buildings and others. In addition, it also engaged in acquiring and sale of both land and developed lots to residential, commercial and industrial clients. Revenue for the group is derived from the source of rental, service and management fees and land sales.