Essential Properties Realty Trust (Essential Properties Realty Trust) Interest Coverage

: 3.91 (As of Dec. 2023)

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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. Essential Properties Realty Trust's Operating Income for the three months ended in Dec. 2023 was $61.7 Mil. Essential Properties Realty Trust's Interest Expense for the three months ended in Dec. 2023 was $-15.8 Mil. Essential Properties Realty Trust's interest coverage for the quarter that ended in Dec. 2023 was 3.91. The higher the ratio, the stronger the company's financial strength is.

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

EPRT' s Interest Coverage Range Over the Past 10 Years
Min: 1.09 Med: 2.66 Max: 4.22
Current: 4.22

EPRT's Interest Coverage is ranked better than
63.66% of 677 companies
in the REITs industry
Industry Median: 3.01 vs EPRT: 4.22

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

Essential Properties Realty Trust Interest Coverage Historical Data

The historical data trend for Essential Properties 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.

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Essential Properties Realty Trust Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.66

2.54

3.90

4.09

4.22

Essential Properties Realty Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.54	4.16	4.39	4.51	3.91

Competitive Comparison

For the REIT - Diversified subindustry, Essential Properties 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.

Essential Properties Realty Trust Interest Coverage Distribution

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

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

Essential Properties 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.

Essential Properties Realty Trust'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, Essential Properties Realty Trust's Interest Expense was $-52.6 Mil. Its Operating Income was $222.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,668.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	222.134	/	-52.597
	=	4.22

Essential Properties Realty Trust's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Essential Properties Realty Trust's Interest Expense was $-15.8 Mil. Its Operating Income was $61.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,668.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	61.656	/	-15.76
	=	3.91

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

Essential Properties Realty Trust (NYSE:EPRT) 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 .

Essential Properties Realty Trust Interest Coverage Related Terms

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

Essential Properties Realty Trust (Essential Properties Realty Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Essential Properties Realty Trust Inc (NYSE:EPRT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2OU:Germany

Address

902 Carnegie Center Boulevard, Suite 520, Princeton, NJ, USA, 08540

Website

https://essentialproperties.com

Essential Properties Realty Trust Inc is a real estate investment trust. It acquires, owns and manages single-tenant properties that are net leased on a long-term basis to middle-market companies operating service-oriented or experience-based businesses.

Executives

Peter M. Mavoides	director, officer: President and CEO	902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Mark E Patten	officer: Executive VP and CFO	PO BOX 10809, DAYTONA BEACH FL 32120
Timothy J Earnshaw	officer: SVP & Chief Accounting Officer	902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Gregg A Seibert	officer: Executive VP and COO	902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Lawrence J Minich	director	5760 N. CALLE DE LOS CAMARONES, TUSCON AZ 85718
Stephen D Sautel	director	C/O HORIZON ACQUISITION, 600 STEAMBOAT ROAD, SUITE 200, GREENWICH CT 06830
Scott A Estes	director	WELLTOWER INC., 4500 DORR STREET, TOLEDO OH 43615
Anthony K. Dobkin	director	195 BOWERY, 6TH FLOOR, NEW YORK NY 10002
Heather Leed Neary	director	973 BUCKWALTER ROAD, LITITZ PA 17543
Paul T Bossidy	director	3135 EASTON TURNPIKE, FAIRFIELD CT 06828
Janaki Sivanesan	director	575 MADISON AVENUE, NEW YORK NY 10022
Eldridge Industries, Llc	10 percent owner	600 STEAMBOAT ROAD, GREENWICH CT 06830
Todd L Boehly	10 percent owner	600 STEAMBOAT ROAD, GREENWICH CT 06830
Eprt Holdings, Llc	10 percent owner	902 CARNEGIE CENTER BLVD., SUITE 520, PRINCETON NJ 08540
Daniel P Donlan	officer: Senior VP - Capital Markets	2021 MCKINNEY AVENUE, SUITE 1150, DALLAS TX 75201