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DEI (Douglas Emmett) Interest Coverage : 0.77 (As of Dec. 2024)


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What is Douglas Emmett 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. Douglas Emmett's Operating Income for the three months ended in Dec. 2024 was $47.9 Mil. Douglas Emmett's Interest Expense for the three months ended in Dec. 2024 was $-62.3 Mil. Douglas Emmett's interest coverage for the quarter that ended in Dec. 2024 was 0.77. 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. Douglas Emmett Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

DEI' s Interest Coverage Range Over the Past 10 Years
Min: 0.71   Med: 1.46   Max: 1.89
Current: 0.87


DEI's Interest Coverage is ranked worse than
88.87% of 719 companies
in the REITs industry
Industry Median: 2.86 vs DEI: 0.87

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


Douglas Emmett Interest Coverage Historical Data

The historical data trend for Douglas Emmett'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.

Douglas Emmett Interest Coverage Chart

Douglas Emmett Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.13 1.36 1.61 0.71 0.90

Douglas Emmett Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 0.99 1.01 0.86 0.77 0.88

Competitive Comparison of Douglas Emmett's Interest Coverage

For the REIT - Office subindustry, Douglas Emmett'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.


Douglas Emmett's Interest Coverage Distribution in the REITs Industry

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

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


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Douglas Emmett 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.

Douglas Emmett's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Douglas Emmett's Interest Expense was $-229.4 Mil. Its Operating Income was $206.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,508.8 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*206.816/-229.442
=0.90

Douglas Emmett's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Douglas Emmett's Interest Expense was $-62.3 Mil. Its Operating Income was $47.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,508.8 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*47.87/-62.331
=0.77

* 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.


Douglas Emmett  (NYSE:DEI) 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 .


Douglas Emmett Interest Coverage Related Terms

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


Douglas Emmett Business Description

Traded in Other Exchanges
Address
1299 Ocean Avenue, Suite 1000, Santa Monica, CA, USA, 90401
Douglas Emmett Inc is an integrated, self-administered, and self-managed REIT. It is an owner and operator of office and multifamily properties located in coastal submarkets in Los Angeles and Honolulu. The group focuses on owning, acquiring, developing, and managing a substantial market share of office properties and multifamily communities in neighborhoods with supply constraints, high-end executive housing, and key lifestyle amenities. Its properties are located in the Beverly Hills, Brentwood, Burbank, Century City, Olympic Corridor, Santa Monica, Sherman Oaks/Encino, Warner Center/Woodland Hills and Westwood submarkets of Los Angeles County, California, and in Honolulu, Hawaii. It has two business segments, the office segment and the multifamily segment.
Executives
Simon William E Jr director 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Michele L Aronson officer: EVP, GEN COUNSEL & SECY 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Shirley Wang director DOUGLAS EMMETT, INC., 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Jordan L Kaplan director, officer: Chief Exec Officer, President 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
David T Feinberg director 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Leslie E Bider director 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Ray C Leonard director DOUGLAS EMMETT, INC., 1299 OCEAN AVENUNE, SUITE 1000, SANTA MONICA CA 90401
Virginia Mcferran director 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Peter Seymour officer: Chief Financial Officer 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Kevin Andrew Crummy officer: Chief Investment Officer 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Kenneth M Panzer director, officer: Chief Operating Officer 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
O Hern Thomas E director THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Johnese Spisso director 4500 DORR STREET, TOLEDO OH 43615
Dan A Emmett director, officer: Chairman of the Board 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401
Dorene Dominguez director C/O CIT GROUP INC, GENERAL COUNSEL, 1 CIT DRIVE, #3251-9, LIVINGSTON NJ 07039