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Simon Property Group Interest Coverage

: 3.35 (As of Mar. 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. Simon Property Group's Operating Income for the three months ended in Mar. 2022 was $620 Mil. Simon Property Group's Interest Expense for the three months ended in Mar. 2022 was $-185 Mil. Simon Property Group's interest coverage for the quarter that ended in Mar. 2022 was 3.35. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Simon Property Group Inc interest coverage is 3.12, which is low.

The historical rank and industry rank for Simon Property Group's Interest Coverage or its related term are showing as below:

SPG' s Interest Coverage Range Over the Past 10 Years
Min: 1.87   Med: 2.96   Max: 3.69
Current: 3.12


SPG's Interest Coverage is ranked worse than
57.81% of 659 companies
in the REITs industry
Industry Median: 3.67 vs SPG: 3.12

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


Simon Property Group Interest Coverage Historical Data

The historical data trend for Simon Property Group'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.

Simon Property Group 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 3.46 3.59 3.69 2.51 3.03

Simon Property Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 2.99 3.02 3.07 3.06 3.35

Competitive Comparison

For the REIT - Retail subindustry, Simon Property Group'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.

   

Simon Property Group Interest Coverage Distribution

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

* The bar in red indicates where Simon Property Group's Interest Coverage falls into.



Simon Property Group 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.

Simon Property Group'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, Simon Property Group's Interest Expense was $-796 Mil. Its Operating Income was $2,413 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,328 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*2413.19/-795.712
=3.03

Simon Property Group's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Simon Property Group's Interest Expense was $-185 Mil. Its Operating Income was $620 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,675 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*620.391/-185.159
=3.35

* 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.


Simon Property Group  (NYSE:SPG) 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 .


Simon Property Group Interest Coverage Related Terms

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


Simon Property Group Business Description

Simon Property Group logo
Industry
Real Estate » REITs NAICS : 531120 SIC : 6798
Address
225 West Washington Street, Indianapolis, IN, USA, 46204
Simon Property Group is the second- largest real estate investment trust in the United States. Its portfolio includes an interest in 207 properties: 119 traditional malls, 69 premium outlets, 14 Mills centers (a combination of a traditional mall, outlet center, and big-box retailers), six lifestyle centers, and five other retail properties. Simon's portfolio averaged $693 in sales per square foot over the 12 months prior to the pandemic. The company also owns a 21% interest in Klepierre, a European retail company with investments in shopping centers in 16 countries, and joint venture interests in 33 premium outlets across 11 countries.
Executives
Aeppel Glyn director 6 WHIPPOORWILL LANE WESTPORT CT 06880
Glasscock Larry C director SYSCO CORPORATION 1390 ENCLAVE PARKWAY HOUSTON TX 77077
Selig Stefan M director 2 EAST 70TH STREET NEW YORK NY 10021
Smith Daniel C. director 3000 GODFREY GRADUATE AND EXECUTIVE CTR. 1275 EAST TENTH STREET BLOOMINGTON IN 47405-1703
Stewart Marta R director C/O NORFOLK SOUTHERN CORP THREE COMMERCIAL PL NORFOLK VA 23510-9219
Smith J Albert Jr director 111 MONUMENT CIRCLE IN1-0175 INDIANAPOLIS IN 46204
Leibowitz Reuben S director 466 LEXINGTON AVENUE 10TH FL NEW YORK NY 10017
Horn Karen N director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HORN KAREN N a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Rodkin Gary M director 700 ANDERSON HILL RD PURCHASE NJ 10577
Hubbard Allan B director ANTHEM INC. 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Mcdade Brian J. officer: EVP, CFO and Treasurer 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Snyder Alexander L.w. officer: Asst. General Counsel/Sec. 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Reuille Adam officer: SVP & Chief Accounting Officer 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Simon Eli officer: Sr. VP, Corporate Investments 225 W. WASHINGTON ST. INDIANAPOLIS IN 46204
Simon Herbert director, other: Chairman Emeritus of the Board 115 W WASHINGTON ST INDIANAPOLIS IN 46204

Simon Property Group Headlines

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