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Highwoods Properties Interest Coverage

: 2.48 (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. Highwoods Properties's Operating Income for the three months ended in Jun. 2022 was $62.1 Mil. Highwoods Properties's Interest Expense for the three months ended in Jun. 2022 was $-25.0 Mil. Highwoods Properties's interest coverage for the quarter that ended in Jun. 2022 was 2.48. 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. Highwoods Properties Inc interest coverage is 2.5, which is low.

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

HIW' s Interest Coverage Range Over the Past 10 Years
Min: 1.3   Med: 2.31   Max: 2.91
Current: 2.5


HIW's Interest Coverage is ranked worse than
67.42% of 660 companies
in the REITs industry
Industry Median: 3.70 vs HIW: 2.50

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


Highwoods Properties Interest Coverage Historical Data

The historical data trend for Highwoods Properties'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.

Highwoods Properties 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 2.87 2.91 2.31 2.75 2.70

Highwoods Properties 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 3.01 2.64 2.38 2.53 2.48

Competitive Comparison

For the REIT - Office subindustry, Highwoods Properties'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.

   

Highwoods Properties Interest Coverage Distribution

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

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



Highwoods Properties 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.

Highwoods Properties'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, Highwoods Properties's Interest Expense was $-85.9 Mil. Its Operating Income was $231.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,788.9 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*231.763/-85.853
=2.70

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

Here, for the three months ended in Jun. 2022, Highwoods Properties's Interest Expense was $-25.0 Mil. Its Operating Income was $62.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $471.4 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*62.139/-25.027
=2.48

* 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.


Highwoods Properties  (NYSE:HIW) 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 .


Highwoods Properties Interest Coverage Related Terms

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


Highwoods Properties Business Description

Highwoods Properties logo
Traded in Other Exchanges
Address
3100 Smoketree Court, Suite 600, Raleigh, NC, USA, 27604
Highwoods Properties Inc is a real estate investment trust engaged in the acquisition, ownership, management, and leasing of properties in urban areas throughout the Southern United States. In terms of total square footage, the vast majority of the company's real estate portfolio comprises office buildings in terms. Highwoods Properties derives nearly all of its income in the form of rental revenue from the tenants of its buildings. Most of this revenue comes from its holdings in the urban markets of Atlanta, Raleigh, Nashville, and Tampa. These cities also account for the majority of the square footage under the company's ownership. Highwoods Properties' largest customers include the U.S. Government, financial services firms, industrial supply retailers, and healthcare companies.
Executives
Gadis David L director 3100 SMOKETREE COURT SUITE 600 RALEIGH NC 27604
Anderson Thomas P director 3751 GRISSOM PARKWAY, SUITE 100 MYRTLE BEACH SC 29577
Leary Brian M officer: EVP & COO 3100 SMOKETREE COURT SUITE 600 RALEIGH NC 27604
Maiorana Brendan C officer: EVP of Finance & IR 3100 SMOKETREE COURT SUITE 600 RALEIGH NC 27604
Lloyd Anne H director
Evans Carlos E director 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27616
Anderson Charles Albert director 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604
Penn Kevin E officer: VP/Chief Strategy & Admin 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604
Klinck Theodore J officer: VP/Chief Investment Officer 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604
Mulhern Mark F director 410 S. WILMINGTON STREET RALEIGH NC 27601
Hartzell David John director 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604
Miller Jeffrey Douglas officer: General Counsel & Sec. 3100 SMOKETREE COURT SUITE 600 RALEIGH NC 27604
Kellett Sherry A director
Cutlip Robert G officer: Sr. Vice President C/O HIGHWOODS PROPERTIES 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604
Reames W Brian officer: Sr. Vice President C/O HIGHWOODS PROPERTIES 3100 SMOKETREE COURT, SUITE 600 RALEIGH NC 27604

Highwoods Properties Headlines

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