Chesapeake Lodging Trust (Chesapeake Lodging Trust) Interest Coverage : 4.12 (As of Jun. 2019)

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What is Chesapeake Lodging 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. Chesapeake Lodging Trust's Operating Income for the three months ended in Jun. 2019 was $33.16 Mil. Chesapeake Lodging Trust's Interest Expense for the three months ended in Jun. 2019 was $-8.04 Mil. Chesapeake Lodging Trust's interest coverage for the quarter that ended in Jun. 2019 was 4.12. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Chesapeake Lodging Trust interest coverage is 2.97, which is low.

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

CHSPPRACL.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 1.95 Med: 2.99 Max: 3.45
Current: 2.97

CHSPPRACL.PFD's Interest Coverage is not ranked
in the REITs industry.
Industry Median: 2.98 vs CHSPPRACL.PFD: 2.97

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

Chesapeake Lodging Trust Interest Coverage Historical Data

The historical data trend for Chesapeake Lodging 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.

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Chesapeake Lodging Trust Interest Coverage Chart

Chesapeake Lodging Trust Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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3.12

3.23

3.45

3.16

2.87

Chesapeake Lodging Trust Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Interest Coverage	Get a 7-Day Free Trial															3.96	3.47	2.58	1.69	4.12

Competitive Comparison of Chesapeake Lodging Trust's Interest Coverage

For the REIT - Hotel & Motel subindustry, Chesapeake Lodging 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.

Chesapeake Lodging Trust's Interest Coverage Distribution in the REITs Industry

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

* The bar in red indicates where Chesapeake Lodging Trust's Interest Coverage falls into.

Chesapeake Lodging 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.

Chesapeake Lodging Trust's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Chesapeake Lodging Trust's Interest Expense was $-34.40 Mil. Its Operating Income was $98.79 Mil. And its Long-Term Debt & Capital Lease Obligation was $751.39 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	98.793	/	-34.399
	=	2.87

Chesapeake Lodging Trust's Interest Coverage for the quarter that ended in Jun. 2019 is calculated as

Here, for the three months ended in Jun. 2019, Chesapeake Lodging Trust's Interest Expense was $-8.04 Mil. Its Operating Income was $33.16 Mil. And its Long-Term Debt & Capital Lease Obligation was $817.34 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2019 )	/	Interest Expense (Q: Jun. 2019 )
	=	-1	*	33.157	/	-8.039
	=	4.12

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

Chesapeake Lodging Trust (NYSE:CHSPPRACL.PFD) 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 .

Chesapeake Lodging Trust Interest Coverage Related Terms

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

Chesapeake Lodging Trust (Chesapeake Lodging Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Chesapeake Lodging Trust (NYSE:CHSPPRACL.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

4300 Wilson Boulevard, Suite 625, Arlington, VA, USA, 22203

Website

http://www.chesapeakelodgingtrust.com

Chesapeake Lodging Trust is a real estate investment trust that invests in upper-upscale hotels in business and convention markets and, selectively, premium select-service hotels in urban settings and other locations in the United States. The company operates through its hotel ownership segment. The firm's operations include management agreements, which includes partnering with third parties to manage its hotels; franchise agreements; and TRS lease agreements, which are intercompany agreements between Chesapeake's property-owning subsidiaries and its TRS lessees. The company's revenue streams include room, food and beverage, and other, of which the room segment contributes the vast majority of total revenue.

Executives

Angelique G. Brunner	director	C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203
Geoffrey Hulme	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
A Alex Porter	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Paul E Orlin	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Jonathan W Friedland	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Porter Orlin Llc	10 percent owner	666 FIFTH AVENUE, SUITE 3403, NEW YORK NY 10103
Graham J. Wootten	officer: SVP, CAO & Secretary	C/O CHESAPEAKE LODGING TRUST, 1997 ANNAPOLIS EXCHANGE PARKWAY, ANNAPOLIS MD 21401
Thomas D Eckert	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
John W Hill	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Jeffrey D Nuechterlein	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
George F Mckenzie	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
James L Francis	director, officer: President & CEO	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Douglas W Vicari	director, officer: EVP, CFO, Treasurer & Sec	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Thomas A Natelli	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
D Rick Adams	officer: SVP and CIO	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401