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Corporate Office Properties Trust (Corporate Office Properties Trust) Interest Coverage

: 2.30 (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. Corporate Office Properties Trust's Operating Income for the three months ended in Dec. 2023 was $49.91 Mil. Corporate Office Properties Trust's Interest Expense for the three months ended in Dec. 2023 was $-21.70 Mil. Corporate Office Properties Trust's interest coverage for the quarter that ended in Dec. 2023 was 2.30. 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. COPT Defense Properties interest coverage is 2.6, which is low.

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

OFCPRLCL.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 1.52   Med: 2.05   Max: 3.08
Current: 2.6


OFCPRLCL.PFD's Interest Coverage is ranked worse than
56.87% of 677 companies
in the REITs industry
Industry Median: 3.01 vs OFCPRLCL.PFD: 2.60

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


Corporate Office Properties Trust Interest Coverage Historical Data

The historical data trend for Corporate Office Properties 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.

* Premium members only.

Corporate Office Properties Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.14 2.37 2.58 3.08 2.60

Corporate Office Properties 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 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 3.12 2.76 2.79 2.65 2.30

Competitive Comparison

For the REIT - Office subindustry, Corporate Office Properties 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.


Corporate Office Properties Trust Interest Coverage Distribution

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

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



Corporate Office Properties 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.

Corporate Office Properties 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, Corporate Office Properties Trust's Interest Expense was $-72.46 Mil. Its Operating Income was $188.46 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,375.22 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*188.462/-72.462
=2.60

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

Here, for the three months ended in Dec. 2023, Corporate Office Properties Trust's Interest Expense was $-21.70 Mil. Its Operating Income was $49.91 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,375.22 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*49.905/-21.703
=2.30

* 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.


Corporate Office Properties Trust  (NYSE:OFCPRLCL.PFD) 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 .


Corporate Office Properties Trust Interest Coverage Related Terms

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


Corporate Office Properties Trust (Corporate Office Properties Trust) Business Description

Traded in Other Exchanges
Address
6711 Columbia Gateway Drive, Suite 300, Columbia, MD, USA, 21046
COPT Defense Properties is a real estate investment trust that acquires, manages, and leases office and data center properties throughout the U.S. The majority of the company's real estate portfolio is composed of office buildings in the Baltimore-Washington Corridor and Northern Virginia area. COPT derives nearly all of its income in the form of rental revenue from tenants. Most of the company's revenue comes from the leasing of properties to U.S. Government agencies and its contractors in the national security, defense, and IT sectors, such as Northrop Grumman and Boeing. Regional offices in urban submarkets make also make up a sizable percentage of COPT's total square footage.