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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. Diamondrock Hospitality Co's Operating Income for the three months ended in Dec. 2023 was $26 Mil. Diamondrock Hospitality Co's Interest Expense for the three months ended in Dec. 2023 was $-20 Mil. Diamondrock Hospitality Co's interest coverage for the quarter that ended in Dec. 2023 was 1.32. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Diamondrock Hospitality Co's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for Diamondrock Hospitality Co'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.
Diamondrock Hospitality Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 2.13 | - | - | 4.14 | 2.30 |
Diamondrock Hospitality Co Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Interest Coverage | Get a 7-Day Free Trial | 9.60 | 1.75 | 3.69 | 2.73 | 1.32 |
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co'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.
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Interest Coverage falls into.
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.
Diamondrock Hospitality Co'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, Diamondrock Hospitality Co's Interest Expense was $-65 Mil. Its Operating Income was $150 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,290 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Dec. 2023 ) | / | Interest Expense (A: Dec. 2023 ) |
= | -1 | * | 149.757 | / | -65.072 | |
= | 2.30 |
Diamondrock Hospitality Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as
Here, for the three months ended in Dec. 2023, Diamondrock Hospitality Co's Interest Expense was $-20 Mil. Its Operating Income was $26 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,290 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Dec. 2023 ) | / | Interest Expense (Q: Dec. 2023 ) |
= | -1 | * | 26.396 | / | -19.933 | |
= | 1.32 |
* 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.
Diamondrock Hospitality Co (NYSE:DRH) 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 .
Thank you for viewing the detailed overview of Diamondrock Hospitality Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Mark W Brugger | officer: Chief Financial Officer | C/O DIAMONDROCK HOSPITALITY COMPANY, 10400 FERNWOOD ROAD, SUITE 3000, BETHESDA MD 20817 |
Justin L. Leonard | officer: EVP & Chief Operating Officer | C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814 |
William J Tennis | officer: EVP and General Counsel | DIAMONDROCK HOSPITALITY COMPANY, 6903 ROCKLEDGE DRIVE, SUITE 800, BETHESDA MD 20817 |
Tabassum Zalotrawala | director | 610 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660 |
Briony R. Quinn | officer: Chief Accounting Officer | DIAMONDROCK HOSPITALITY COMPANY, 3 BETHESDA METRO CENTER, SUITE 1500, BETHESDA MD 20814 |
Troy Furbay | officer: Chief Investment Officer | DIAMONDROCK HOSPITALITY COMPANY, 3 BETHESDA METGRO CENTER, SUITE 1500, BETHESDA MD 20814 |
Michael A. Hartmeier | director | C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814 |
Jeffrey Donnelly | officer: EVP & Chief Financial Officer | C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814 |
Maureen L Mcavey | director | C/O DIAMONDROCK HOSPITALITY COMPANY, 10400 FERNWOOD ROAD, SUITE 300, BETHESDA MD 20817 |
Kathleen Wayton | director | C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814 |
Gilbert T Ray | director | 901 N GLEBE ROAD, ARLINGTON VA 22203 |
Jay Lecoryelle Johnson | officer: EVP & Chief Financial Officer | C/O DIAMONDROCK HOSPITALITY COMPANY, 2 BETHESDA METRO CENTER, SUITE 1400, BETHESDA MD 20814 |
Thomas G. Healy | officer: EVP & Chief Operating Officer | DIAMONDROCK HOSPITALITY COMPANY, 3 BETHESDA METRO CENTER, SUITE 1500, BETHESDA MD 20814 |
Sean M Mahoney | officer: CAO and Corporate Controller | 3 BETHESDA METRO CTR #1000, BETHESDA MD 20814 |
William Joseph Shaw | director | 6649 WESTWOOD BLVD., ORLANDO FL 32821 |
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