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CubeSmart Interest Coverage

: 3.57 (As of Jun. 2022)
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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. CubeSmart's Operating Income for the three months ended in Jun. 2022 was $82.4 Mil. CubeSmart's Interest Expense for the three months ended in Jun. 2022 was $-23.1 Mil. CubeSmart's interest coverage for the quarter that ended in Jun. 2022 was 3.57. The higher the ratio, the stronger the company's financial strength is.

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

CUBE' s Interest Coverage Range Over the Past 10 Years
Min: 0.67   Med: 3.09   Max: 3.7
Current: 3.62


CUBE's Interest Coverage is ranked worse than
50.98% of 663 companies
in the REITs industry
Industry Median: 3.68 vs CUBE: 3.62

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


CubeSmart Interest Coverage Historical Data

The historical data trend for CubeSmart'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.

* Premium members only.

CubeSmart Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.46 3.54 3.20 3.39 3.70

CubeSmart Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 3.65 4.21 3.69 3.11 3.57

Competitive Comparison

For the REIT - Industrial subindustry, CubeSmart'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.

   

CubeSmart Interest Coverage Distribution

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

* The bar in red indicates where CubeSmart's Interest Coverage falls into.



CubeSmart 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.


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

CubeSmart's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, CubeSmart's Interest Expense was $-78.4 Mil. Its Operating Income was $290.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,001.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*290.602/-78.448
=3.70

CubeSmart's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, CubeSmart's Interest Expense was $-23.1 Mil. Its Operating Income was $82.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,001.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*82.421/-23.055
=3.57

* 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.


CubeSmart  (NYSE:CUBE) 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 .


CubeSmart Interest Coverage Related Terms

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


CubeSmart Business Description

CubeSmart logo
Traded in Other Exchanges
Address
5 Old Lancaster Road, Malvern, PA, USA, 19355
CubeSmart is a real estate investment trust that acquires, owns, and manages self-storage facilities throughout the United States. The company's real estate portfolio is composed of buildings with numerous enclosed storage areas for both residential and commercial customers to rent mainly on a month-by-month basis. Most of CubeSmart's facilities are located in Florida, Texas, California, New York, and Illinois. Cumulatively, these states account for both the majority of the square footage in the company's real estate portfolio and the majority of its revenue. CubeSmart derives nearly all of its revenue from rental income from tenants utilizing its storage facilities.
Executives
Lynch Jair K director 5 OLD LANCASTER RD MALVERN PA 19355
Keaton Joel D officer: Sr VP of Operations 5 OLD LANCASTER ROAD MALVERN PA 19355
Dowling Dororthy director 5 OLD LANCASTER ROAD MALVERN PA 19355
Perry Jonathan L officer: SVP and CIO 5 OLD LANCASTER ROAD MALVERN PA 19355
Ratnersalzberg Deborah director 301 WATER ST SE SUITE 201 WASHINGTON DC 20003
Fain John W director 1000 SEMMES AVE RICHMOND VA 23224
Rogatz Jeffrey F director
Blatz Robert G officer: SR VP of Operations 29399 US HWY STE 320 CLEARWATER FL 33761
Bussani Piero director 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Remondi John F director 300 CONTINENTAL DRIVE NEWARK DE 19713
Foster Jeffrey P officer: Sr. VP - Chief Legal Officer 460 EAST SWEDESFORD ROAD SUITE 3000 WAYNE PA 19087
Amsdell & Amsdell other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Holdings I Inc. other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Amsdell Real Estate Trust Dated 10/3/89 other: Member of 13d group owning 10% 20445 EMERALD PARKWAY DRIVE SW SUITE 220 CLEVELAND OH 44135
Andrews Charles Elliott director C/O H&R BLOCK ONE H&R BLOCK WAY KANSAS CITY MO 64105

CubeSmart Headlines

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